Asian shares trade mixed and gold jumps more than 4% after the Fed keeps rates unchanged
TOKYO (AP) — Asian shares were mixed Thursday as a wait-and-see attitude dominated in regional markets following the Federal Reserve’s decision to keep its key interest rate unchanged.
That was expected, and Fed Chair Jerome Powell said interest rates look to be “in a good place” for now.
Gold jumped another 4.6%, trading at $5,545 per ounce and silver was up 4.1%. The dollar weakened against the Japanese yen and oil prices rose.
Gains for some technology companies reporting strong earnings failed to give shares in Tokyo much of a lift as the Nikkei 225 rose less than 0.1% to 53,375.60.
Computer chip testing equipment maker Advantest surged 5.2% after it reported stronger than anticipated earnings. Some tech company shares, like Panasonic Holdings, fell, while others rose, like chips maker Kioxia Holdings Corp. and Sony Corp.
Earnings season is getting into full gear, with major Japanese companies like Toyota Motor Corp., Sony Corp. and Nintendo Co. due to report their earnings next week.
Elsewhere in Asia, South Korea’s Kospi surged 1.0% to 5,221.25, hitting a fresh record as computer chip maker SK Hynix picked up 2.4% on a strong earnings report.
Hong Kong’s Hang Seng added 0.3% to 27,917.12, while the Shanghai Composite index gained 0.2% to 4,157.98.
Australia’s S&P/ASX 200 shed nearly 0.1% to 8,927.50.
In Jakarta, the JSX sank 2.4%, extending a sharp decline after the MSCI, a U.S. provider of global equity, fixed income and real estate indices, warned about market risks in Indonesia.
On Wednesday, the reaction to the Fed’s decision to stand pat was muted.
The S&P 500 lost less than one point to 6,978.03 points. The Dow Jones Industrial Average rose 12 points, or less than 0.1%, to 49,015.60, and the Nasdaq composite rose 0.2% to 23,857.45.
Seagate Technology jumped 19.1% for the biggest gain in the S&P 500 after the seller of hard drives and other data-storage products reported a bigger profit for the latest quarter than analysts expected. Nvidia, the stock that’s become the poster child of the AI boom, climbed 1.6% and was the strongest single force lifting the S&P 500. Apple slipped 0.7%, the single heaviest weight on the S&P 500.
In the foreign-exchange market, the U.S. dollar stabilized after Treasury Secretary Scott Bessent said in an interview on CNBC that the U.S. government is not intervening in the currency market and continues to want a “strong dollar.”
The dollar fell to 153.35 Japanese yen from 153.42 yen. The euro cost $1.1972, up from $1.1955.
“From Washington’s side, a slightly firmer yen is convenient for domestic manufacturing concerns. From Tokyo’s side, even symbolic Fed acknowledgement buys time and credibility,” Stephen Innes, managing partner at SPI Asset Management, said in a commentary.
The yield on the 10-year Treasury remained at 4.24%, where it was late Tuesday.
The Fed cut rates several times last year to try to shore up the job market, but inflation remains stubbornly above its 2% target. Lower interest rates could worsen inflation while giving the economy a boost. Lower rates could also further undercut the U.S. dollar’s value, which would help U.S. exporters. Trump has been pushing aggressively for lower rates.
In energy trading, benchmark U.S. crude gained $1.17 to $64.39 a barrel. Brent crude, the international standard, rose $1.25 to $69.65 a barrel.
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AP Business Writer Stan Choe contributed.
Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama