Asian Stocks Stutter After Rout, Fed Leaves Markets Guessing on Rates
A split Federal Reserve left investors unsure on the next move, while chip stocks, higher Treasury yields and Middle East tensions kept markets volatile.
- On Thursday, Asian stocks struggled for direction as investor jitters about AI spending and a divided Federal Reserve kept interest rates steady, leaving bond markets questioning the central bank's path forward.
- Fed Chair Kevin Warsh vowed to contain inflation but declined to offer specific guidance on future actions, leaving markets confused about whether rate hikes would follow to combat inflation.
- Chipmaker Samsung Electronics reported a record 19-fold profit jump, while Meta and Microsoft earnings revealed contrasting fortunes; a deep selloff in South Korean stocks wiped more than $2 trillion from the equity market.
- The KOSPI rose 4% in choppy Thursday trading but remains down 12% for the week, prompting Finance Minister Koo Yun-cheol to apologize for introducing single-stock leveraged ETFs.
- Portfolio manager Gina Kim called the selling "irrational" and "panic-like," while analyst Chris Weston described the Fed's inflation message as "defiant" with "very little substance." Markets price in a 60% chance of a September rate hike.
14 Articles
14 Articles
In Japan, the Nikkei is in plus, while the broader topix loses. In South Korea, trade is again volatile. In the course of trade, the Kospi is hardly changed.
Asian stocks choppy after rout, Fed leaves markets uncertain on rates
Global Market Today: Asian stocks mixed, bonds slip after Fed decision
Asian stocks fluctuated on Thursday as semiconductor shares declined. Treasury yields reached multi-decade highs following the Federal Reserve's policy decision. Microsoft's cloud growth boosted its stock, while Meta's forecast caused a slide. South Korea implemented measures to stabilize its stock market after a significant rout. Oil prices edged lower amid reports of US air strikes on Iran.
Asian Stocks Diverge as Divided Fed Leaves Global Stocks Guessing
Asian markets traded without clear direction on Thursday. Investors weighed a divided Federal Reserve decision against fresh volatility in South Korean equities. Japan's Nikkei 225 climbed nearly one percent, trading above 62,000. South Korea's KOSPI slipped about one percent, extending a stretch...
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