Asian equity markets lost some steam on Thursday after a run of strong gains, with mixed technology-sector earnings and uncertainty ahead of Apple’s report prompting a more cautious tone among investors. At the same time, gold and silver extended sharp rallies to fresh all-time highs as demand for physical assets escalated, and oil prices rose to their highest levels in four months amid renewed geopolitical tensions.
The U.S. Federal Reserve left interest rates unchanged, as widely expected. Chair Jerome Powell described the economic outlook as "clearly improving" and said there was broad committee support for maintaining the current pause in policy. When pressed about his own future beyond his scheduled departure as Chair in May, Powell declined to say whether he would remain a governor, an answer that came amid public pressure from President Trump for steeper rate cuts.
Markets reacted to the Fed statement and comments by scaling back the odds of an interest-rate easing in April to 26%, while pricing in a 61% probability that any move would come in June instead. Investors are increasingly looking to corporate earnings to sustain demand for equities, and some major technology sector reports have offered mixed signals.
Samsung Electronics reported a threefold increase in operating profit, attributed to a surge in chip prices as companies race to build artificial intelligence capability. Despite that strong result, South Korean equities fell 1.2% on the day after already having climbed 21% so far this month. Technology-heavy Taiwan has gained almost 14% over the same period, illustrating how much of the rally was already priced into markets.
Japan’s Nikkei dipped 0.1%, pressured by volatile swings in the yen and a sharp rise in domestic bond yields. Broadening the view, MSCI’s index of Asia-Pacific shares outside Japan fell 0.6% on the session. In Europe, futures for the EUROSTOXX 50 and the FTSE were down 0.2%, while DAX futures eased 0.1%.
Wall Street and the AI capital expenditure debate
U.S. futures also reflected the cautious mood. S&P 500 futures dropped 0.2% and Nasdaq futures lost 0.1% after a mixed set of tech results. Microsoft slid 6.5% in after-hours trading on concerns that its heavy capital expenditure on AI infrastructure may not generate returns sufficient to justify its elevated valuation. By contrast, Meta reported stronger-than-expected guidance and raised its outlook for 2026 revenues and capital spending, boosting its shares by 8% in after-hours trade and adding roughly $140 billion to its market capitalization.
Analysts at JPMorgan highlighted a shared theme emerging from both companies: larger-than-expected capex outlays that reflect rising momentum in AI spending. The distinction, JPMorgan noted, was that Meta also significantly lifted its revenue outlook for 2026 to well above market expectations, while Microsoft did not offer comparable near-term revenue upgrades.
All eyes turned to Apple’s results. JPMorgan expected Apple to beat consensus estimates, citing stronger demand for iPhone 17 and slower growth in operating expenses. The bank also raised its end-2026 price target for Apple to $315 from $305.
Currencies, metal demand and commodity movements
The dollar came under pressure as investors sought protection against U.S. policy uncertainty and concerns about the rising level of government debt. Official statements provided limited support. U.S. Treasury Secretary Scott Bessent reiterated that the administration favored a "strong dollar" policy, a comment that followed signals from President Trump appearing to condone a weaker currency. European officials expressed concern over the dollar’s decline, and European Central Bank comments suggested a further sharp appreciation of the euro could prompt interest-rate cuts.
On the day, the euro strengthened 0.2% to $1.1973. The dollar fell 0.4% against the Swiss franc to 0.7657 and slipped 0.3% versus the Japanese yen to 152.97. Capital Economics economist Jack Allen-Reynolds warned that continued dollar weakness would make rate cuts by the ECB and other central banks more likely, and could lead emerging markets to repeat last year’s strong performance.
The softer dollar has helped lift demand for hard assets. Gold jumped 1.8% to $5,485 an ounce, taking its gains for the month to 27%, while silver and copper also surged as investors piled into physical commodities.
Oil rallies on Iran risk
Oil prices extended a recent rally as markets worried that any U.S. military action against Iran could disrupt global supplies. Brent crude rose 0.6% to $68.80 a barrel, and U.S. crude increased 0.7% to $63.65 per barrel. The tensions followed remarks from U.S. President Donald Trump warning Iran of potential attacks if it did not reach a deal on nuclear weapons. Traders priced in the elevated geopolitical risk as a driver of higher energy prices.
Market implications and near-term outlook
Investors are balancing robust earnings from some technology firms, exemplified by Samsung’s profit surge, against signs that much of the positive news is already reflected in prices. Mixed reports from large-cap tech names and heightened macro uncertainty - including central bank policy paths and geopolitical risk - have left markets more cautious. Precious metals and other hard assets have benefited from dollar weakness and have seen strong inflows as a perceived hedge against those risks.
Short-term attention will remain fixed on Apple’s earnings report and how other major tech companies reconcile heavy AI-related capex with revenue growth. At the same time, central bank commentary and geopolitical developments, particularly over Iran, will continue to influence currency, commodity and equities markets.
Note: This article reflects market moves, company results and official statements reported for the day and does not include speculative commentary beyond those facts.