Asian equities closed mixed on Thursday, with some markets rebounding while others experienced declines. Taiwan's benchmark climbed 1.66% to 40,705.65, and South Korea's Kospi gained 3.55% to 5,864.46 after a significant sell-off in chipmakers, though it still faces a weekly decline of 12%. Japan's Nikkei 225 rose 1.43% to 62,315.56, but is also on track for a 3% weekly drop. In contrast, Hong Kong's Hang Seng slipped 0.13%, China's Shanghai lost 0.32%, and Shenzhen declined 2.19%.
The Japanese yen showed a sharp gain, last up 2.33% against the dollar at 159.65, fueling speculation that Japanese officials intervened to support the currency following its weakening to a 40-year low. The Bank of Japan is anticipated to keep rates steady at 1% on Friday. Meanwhile, the dollar fluctuated after the U.S. Federal Reserve held rates steady, but the divided decision left investors uncertain about future rate hike paths, leading to longer-dated U.S. Treasury yields rising to 19-year highs.
U.S. stocks saw a rally, with the Dow Jones Industrial Average rising 1.03% to 52,127.62, the S&P 500 gaining 1.44% to 7,421.41, and the Nasdaq Composite increasing 2.55% to 25,065.84. This upward movement was partly attributed to Microsoft, which rose 17% after forecasting strong current-quarter sales and cloud growth. However, overall market sentiment in Asia remains fragile due to concerns over an AI-driven market sell-off, ongoing uncertainty regarding U.S. interest rates, geopolitical tensions, and volatility in the semiconductor industry.
