Asian stocks split after Fed holds rates and Alphabet earnings disappoint

Asian stock indices moved in opposite directions on Thursday following a Federal Reserve decision to hold interest rates steady. The markets are currently waiting for the European Central Bank to conclude its meeting later in the day. The Bank of Japan is expected to maintain its current policy stance when it finishes its session on Friday.

In Tokyo, the Nikkei 225 index rose by 1.1 percent to close at 64,659.47. Shares of SoftBank Group, an investor in OpenAI, climbed 1.8 percent. The Nikkei gain occurred despite a broader wave of caution in the technology sector.

South Korean markets saw a decline as the Kospi index dropped 1.2 percent to 5,937.66. Samsung Electronics shares fell 4.1 percent even after the company reported strong quarterly results. Investors were reportedly unhappy with the firm’s latest shareholder return policy. In contrast, memory chipmaker SK Hynix saw its stock rise 2.6 percent, following a 10.9 percent surge the previous day driven by better-than-expected earnings.

Other Asian indices also recorded losses. The Taiex in Taiwan, a beneficiary of the artificial intelligence boom, declined 1.4 percent. Hong Kong’s Hang Seng index slipped 0.2 percent to 23,038.70, while the Shanghai Composite index lost 0.8 percent to 3,651.43. Australia’s S&P/ASX 200 was the exception, gaining 0.5 percent to reach 8,891.80.

U.S. technology earnings have unsettled markets that were buoyed by high hopes for AI revenue. Alphabet Inc. shares dropped approximately 10 percent in after-hours trading. The company reported quarterly revenues that fell short of investor expectations, sparking debate over whether its massive AI investments will generate sufficient sales. Microsoft shares moved in the opposite direction, gaining nearly 3 percent in after-hours trading after posting earnings that exceeded expectations.

On Wall Street, the S&P 500 added 0.3 percent on Wednesday, while the Dow Jones Industrial Average and the Nasdaq composite both rose 0.2 and 0.3 percent, respectively. In the bond market, the yield on the 10-year U.S. Treasury settled near 5.00 percent, easing from a brief jump to 5.04 percent. The two-year Treasury yield stabilized at about 4.69 percent, down from above 4.77 percent.

Oil prices remained relatively stable despite warnings from U.S. officials that military action against Iran could resume after the November 3 midterm elections. Brent crude oil fell 0.6 percent to $110.94 per barrel, a level significantly higher than the $72 seen before the late February conflict. Benchmark U.S. crude dropped 0.8 percent to $101.96 per barrel. The U.S. dollar appreciated slightly to 157.85 yen, while the euro weakened to $1.1139.