Asia stocks fall; KOSPI erases 5% gains.
Most Asian stock markets fell on Thursday, with South Korea surrendering early gains in a volatile session, as investor worries around artificial intelligence-related spending persisted despite strong earnings from Samsung Electronics and major U.S. technology companies.
Regional markets struggled for direction as the Federal Reserve left interest rates unchanged overnight while offering little clarity on its next policy move.
U.S. stock index futures ticked higher by 23:43 ET (03:43 GMT), after paring some gains driven by strong Microsoft (NASDAQ:MSFT) earnings.
Wall Street had ended lower overnight amid renewed U.S.-Iran hostilities and a sharp rebound in oil prices.
KOSPI volatile, pares gains despite upbeat Samsung earnings
South Korea’s KOSPI traded 0.5% lower after swinging between gains and losses. It had surged nearly 5% at the open, sparking hopes that this week’s AI-driven selloff had bottomed out, but later reversed course as semiconductor stocks came under renewed pressure.
Gold slips as Fed optimism fades.
Gold prices turned lower on Thursday as investors reassessed Federal Reserve Chair Kevin Warsh’s inflation message after the central bank left rates steady, while a firmer U.S. dollar and recovering Treasury yields weighed on bullion.
At 00:44 ET (04:44 GMT), XAU/USD fell 0.4% to $4,049.99 an ounce, after earlier climbing to a one-week high of $4,100.42 following the Fed’s policy decision. Gold Futures rose 0.3% to $4,047.20, while XAG/USD slipped 0.6% to $57.32. XPT/USD fell 1.3% to $1,597.87.
Fed pause initially boosts bullion before gains fade
Gold initially rallied after the Federal Reserve left interest rates unchanged, as Treasury yields retreated and the US Dollar Index weakened immediately following the policy decision, increasing the appeal of non-yielding bullion.
The US Dollar Index was last little changed around 100.9, while benchmark Treasury yields also recovered from their post-decision lows, limiting further upside for bullion.
US stock futures rise as Microsoft surges.
U.S. stock index futures rose early-Thursday, aided by a sharp rise in Microsoft after the technology giant clocked strong quarterly earnings and also provided reassurances on artificial intelligence spending.
But futures sharply trimmed their gains as investors remained on edge over continued U.S.-Iran aggression, while some hawkish signals from the Federal Reserve’s latest meeting also weighed.
A sharp drop in Meta Platforms also hurt overall sentiment towards tech stocks.
S&P 500 Futures rose 0.1% to 7,361.50 points by 02:49 ET (06:49 GMT). Nasdaq 100 Futures rose 0.39% to 27,448.50 points, while Dow Jones Futures were flat at 51,764.0 points.
Futures rose after a deeply negative session on Wall Street, where outsized losses in tech shares, especially chipmakers, largely offset some positive earnings prints.
A whipsaw Asian session– where the chip-heavy KOSPI swung wildly between gains and losses– also set up Wall Street for a mixed session.
Microsoft surges on strong earnings, Meta slides
Microsoft Corporation (NASDAQ:MSFT) jumped nearly 9% in aftermarket trade on Wednesday after the Redmond, Washington-based tech giant clocked stronger-than-expected top and bottom-line earnings in its fiscal fourth quarter ended June.
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