BEIJING (dpa-AFX) - Asian stocks ended mixed on Thursday as investors reacted to the U.S. Federal Reserve's rate decision as well as earnings from tech heavyweights, including Alphabet, Microsoft and Samsung Electronics.
Ongoing diplomatic efforts between regional Middle Eastern powers to avoid an escalation between the U.S. and Iran helped limit regional losses, if any.
Google parent Alphabet shares slumped more than 10 percent in after-hours trading after the company came up short of Wall Steet expectations despite posting strong revenue growth in its third quarter. The company's search and advertising sales missed estimates.
On the contrary, Microsoft shares jumped over 5 percent. The technology giant delivered better-than-expected earnings and revenue in its fiscal 2027 first quarter and kept its capital expenditures in check, offering some respite to investors worried over rising AI spending.
The U.S. dollar was little changed in Asian trade ahead of the release of PCE inflation data, which could sway the Fed's future decisions.
Gold prices fell more than 1 percent toward $4,000 an ounce after the Fed offered little clarity on its next move.
Brent crude prices traded below $115 a barrel, moving away from four-year highs following fresh diplomatic efforts to end the war in the Middle East.
Iran's Foreign Minister Abbas Araghchi said Teheran continued to give diplomacy a chance. According to the Wall Street Journal, U.S. President JD Vance had reached out to Iranian national security official Mohsen Rezaei.
U.S. President Donald Trump confirmed that negotiations were underway through mediators but stressed he didn't know whether they would bear fruit.
Elsewhere, Yemen's Houthis launched an attack on the Aden airport on Wednesday after issuing evacuation warnings due to escalating violence.
Global commodity prices are set to surge 23 percent in 2026 as a result of global conflicts and EI Nino, the World Bank said in a report.
China's Shanghai Composite index dropped 0.82 percent to 3,651.43 amid weak global AI sentiment. Hong Kong's Hang Seng index slipped 0.59 percent to 22,958.65.
Japanese markets advanced following Advantest's improved profit forecast. While shares of the chip equipment maker soared 6 percent, the Nikkei average closed 1.10 percent higher at 64,659.47. The broader Topix index inched up 0.29 percent to 4,003.28.
Conglomerate Hitachi plummeted 9.8 percent despite the company raising its full-year guidance for the second time in fiscal 2026.
Seoul stocks ended sharply lower as bellwether Samsung Electronics delivered weaker-than-expected third-quarter earnings. The Kospi index fell 1.24 percent to 5,937.66. While shares of Samsung Electronics slumped 4.1 percent due to investor disappointment over a lack of detail about returns to shareholders, SK Hynix rallied 2.6 percent to build on its strong showing this week.
Australian markets eked out modest gains, with banks rising as traders priced in another Reserve Bank of Australia rate hike at its November 3 meeting. The big four banks rose around 2 percent each, offsetting selling in the mining sector.
The benchmark S&P/ASX 200 rose haff a percent to 8,891.80 while the broader All Ordinaries index settled 0.46 percent higher at 9,012.60.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index edged up 0.14 percent to 13,710.17, extending gains from the previous session after the Reserve Bank of New Zealand unexpectedly held the OCR at 2.75 percent.
Overnight, U.S. stocks rose for a third straight session as investors cheered strong earnings from AI-related companies and the Federal Reserve's decision to hold rates at 3.75-4 percent in a 10-2 split vote before midterm elections.
The yield on the 10-year Treasury remained elevated above 5 percent and Brent crude oil surged to a six-month high after reports of Houthi attacks on Saudi Arabi's biggest oil refinery and a decline in U.S. crude inventories, limiting potential gains.
The Fed upgraded its assessment of economic activity to 'strong' from 'solid,' while acknowledging inflation remains elevated.
Chair Kevin Warsh gave no clear signal of a December hike, reiterating opposition to issuing forward guidance.
According to the CME FedWatch Tool, markets currently expect a 78 percent probability of a December rate hike, down from about 84 percent before the meeting.
While the Dow edged up 0.2 percent, the S&P 500 and the tech-heavy Nasdaq Composite both added around 0.3 percent.
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