Asian share markets produced mixed outcomes on Thursday, with notable rebounds in South Korea and Japan after sharp declines earlier in the week. Investors parsed strong corporate results from Samsung Electronics and major U.S. technology companies even as the Federal Reserve's recent decision left questions about the near-term policy path.
In Asian trading, U.S. stock index futures were trading higher by 22:15 ET (02:15 GMT), led by gains in Nasdaq 100 futures after Microsoft reported results that buoyed sentiment. The backdrop remained fragile: Wall Street finished lower overnight, pressured by a resurgence of U.S.-Iran tensions and a steep jump in oil prices.
KOSPI recovers on technology sector buying
South Korea's benchmark KOSPI rallied roughly 3% as buyers moved back into beaten-down semiconductor names following a heavy selloff that erased a sizable share of this year's AI-related gains. The index had fallen nearly 17% over the prior two sessions.
Samsung Electronics (005930) posted a sharp increase in second-quarter earnings, with semiconductor operating profit rising more than 250-fold from a year earlier. The company cited persistent demand for high-bandwidth memory chips used in artificial intelligence servers. Samsung's shares climbed about 8% on the report. Seoul-listed SK Hynix (000660) also traded higher, gaining about 2%.
Despite the bounce, caution persisted across South Korean equities following an especially difficult stretch of consecutive declines. Investors remain uncertain whether record AI-related capital spending by global technology companies will translate into stronger earnings for the sector.
Mixed responses across the region
Japan's Nikkei 225 advanced nearly 2%, while the broader TOPIX index was largely unchanged. Elsewhere in the region, China's Shanghai Composite dipped 0.4% and the blue-chip CSI300 slipped about 1%. Hong Kong's Hang Seng was mostly flat. Australia's S&P/ASX 200 fell 0.4%, Singapore's Straits Times Index declined 0.6%, and futures tied to India's Nifty 50 ticked down about 0.2%.
Within the semiconductor industry, sentiment remained uneven. Market reactions to SK Hynix's results earlier in the week were disappointing despite the company reporting record profits, and growing competition from Chinese AI firms added pressure across the sector.
U.S. earnings and the Fed outlook
On Wall Street, investors evaluated results from Microsoft and Meta Platforms. Microsoft rose in after-hours trading after reporting stronger-than-expected growth in its Azure cloud business. Meta posted solid revenue figures but cautioned that investments in artificial intelligence will continue to drive elevated capital spending.
Market participants also digested the Federal Reserve's latest move. The Fed held its benchmark interest rate unchanged at 3.50%-3.75%, as widely anticipated, but a split vote within the Federal Open Market Committee and cautious comments from Chair Kevin Warsh contributed to uncertainty about the timing of any future policy action. Markets pared back expectations for an imminent rate increase, even as policymakers signaled that inflation risks remained elevated.
Geopolitics and market sensitivity
Geopolitical developments continued to influence risk sentiment after the United States launched strikes against Iran in response to Tehran's attempted missile attack on U.S. forces in the Middle East. Renewed hostilities, coupled with a sharp rebound in oil prices, weighed on investor appetite and were cited as reasons for Wall Street's negative finish the previous session.
Overall, Thursday's trading highlighted a market trying to reconcile company-specific positive news, particularly in semiconductors and cloud computing, with wider macro and geopolitical uncertainty. The result was a patchwork of rebounds and declines across Asian indices as investors adjusted positions in response to earnings, central bank ambiguity, and heightened geopolitical risk.