Most Asian stock markets edged lower on Thursday, taking a pause after a recent rally in technology shares. Investors weighed mixed earnings from major U.S. tech companies alongside the Federal Reserve’s decision to keep interest rates unchanged.
Overnight, Wall Street closed largely flat. The S&P 500 and Nasdaq posted only modest moves as investors digested results from several mega-cap technology firms. U.S. equity futures slipped slightly during Asian trading hours, pointing to a softer start later in the session.
Mixed U.S. tech earnings pressure sentiment
Earnings from leading U.S. technology companies sent mixed signals across global markets. Shares of Meta Platforms surged in after-hours trading after the company delivered an upbeat revenue outlook, reinforcing optimism around AI-driven advertising growth. Tesla also exceeded expectations, offering some support to growth stocks.
However, sentiment cooled after Microsoft reported results highlighting rising costs linked to heavy investment in artificial intelligence, prompting a pullback in its shares and weighing on the broader tech sector.
Asian technology stocks, which had climbed sharply in recent weeks on strong AI demand expectations, retreated from recent highs as investors moved to lock in profits.
South Korea’s KOSPI slipped 0.3% after briefly hitting record levels earlier in the session. Shares of chipmaking giants Samsung Electronics and SK Hynix initially advanced after posting solid earnings and outlooks, but later pared gains amid wider market weakness.
Fed pause remains in focus
The Fed’s policy stance continued to shape investor sentiment. On Wednesday, the central bank left its benchmark rate unchanged, extending a pause after a series of cuts last year. Fed Chair Jerome Powell said policymakers need greater confidence that inflation is moving sustainably toward the 2% target before easing policy further, while noting that economic growth remains resilient.
Market pricing suggests investors expect rates to stay on hold in the near term, with potential cuts later in the year.
Asian markets trade lower
Across the region, Japan’s Nikkei 225 dipped 0.2%, while the broader TOPIX index eased 0.3%. Hong Kong’s Hang Seng index fell 0.2% after rallying more than 2.5% in the previous session.
Mainland Chinese markets were largely flat, with both the Shanghai Composite and CSI 300 showing little movement. Australia’s S&P/ASX 200 dropped 0.6%, while Singapore’s Straits Times Index edged down 0.1%. Futures for India’s Nifty 50 also pointed to a slightly weaker open.
