Hong Kong (CNN Business) Asian markets mostly rose on Thursday after the Federal Reserve cut rates , while Japan's central bank kept monetary policy unchanged.

Overnight, the Federal Reserve cut interest rates by a quarter percentage point for the second time since July. Officials also left the door open for another rate cut this year if the economy weakens further.

On Thursday morning, the Bank of Japan kept its monetary policy steady. It maintained short-term interest rates at minus 0.1% and its target for ten-year government bond yields at 0%But the central bank expressedconcerns about risks to the global economic outlook and said it will reexamine economic and price developments at the next policy meeting in October.

Hong Kong's economy is expected to shrink further in the third quarter and could eventually slide into a recession as the US-China trade war and massive protests in the city take a toll, Hong Kong's Financial Secretary Paul Chan said in an interview with Chinese state-run newspaper Global Times on Thursday.

negotiations in the coming weeks. Investors in the region are looking ahead to a potential cooling of US-China trade tensions, as the two sides gear up for talks. Deputy-level officials from the two countries are scheduled to hold a meeting later today in Washington to prepare for furthernegotiations in the coming weeks.

The two economic superpowers said earlier this month that they have agreed to return to the negotiating table.