By Basant El-Faramawy
Asian shares and U.S. futures traded mixed Thursday as Google parent Alphabet's disappointing earnings weighed on technology stocks, while investors digested the Federal Reserve's decision to hold interest rates steady.
Alphabet Earnings Drag Tech Stocks
Alphabet shares fell about 10% in after-hours trading after the company posted quarterly revenue that missed expectations, raising concerns about its ability to monetize massive artificial intelligence investments. Microsoft, however, gained nearly 3% after reporting better-than-expected results.
Central Banks in Focus
The Federal Reserve kept rates unchanged Wednesday, though two officials favored a hike and analysts see a December increase as likely with inflation still elevated. Markets awaited the European Central Bank's policy decision later Thursday, while the Bank of Japan is expected to maintain its stance Friday.
Asian Market Performance
Japan's Nikkei 225 edged up 0.2% to 64,073.17, while South Korea's Kospi dropped 2.2% to 5,880.25 as Samsung Electronics sank 5.4% despite strong quarterly results. Taiwan's Taiex fell 1.9%, Hong Kong's Hang Seng rose marginally to 23,101.86, and the Shanghai Composite lost 0.9% to 3,647.12. Australia's S&P/ASX 200 gained 0.5% to 8,888.50.
Oil and Currency Moves
Brent crude fell 1.2% to $110.32 a barrel and U.S. crude dropped 1.3% to $101.46, even as U.S. officials warned of possible renewed military action against Iran after the November midterm elections. The dollar slipped to 157.72 yen from 157.84, while the euro dipped to $1.1146 from $1.1154.
