Asia-Pacific markets traded mixed Thursday as investors assessed the Bank of Japan's decision to stand pat on short-term interest rates at 0.5%. Investors are also evaluating the U.S.' blanket 15% tariffs on imports from South Korea and 25% duties on imports from India. South Korean auto stocks plunged following these tariff announcements.
The S&P 500 closed lower on Wednesday after Fed Chair Jerome Powell signaled the central bank isn't ready to cut rates. The index slipped 0.12%, while the Dow Jones Industrial Average fell 171.71 points. Powell stated that no decisions have been made about a potential policy change in September.
Gold fell on Wednesday as the Federal Reserve held interest rates steady at its July meeting. Spot gold was down 0.7% at $3,301.82 per ounce. The federal funds rate will continue to be set in a range between 4.25% to 4.5%.
Oil prices climbed 1% on Wednesday as investors focused on President Trump's tighter deadline for Russia to end the war in Ukraine and his tariff threats. Brent crude futures rose 1.01% to close at $73.24 a barrel.
The dollar advanced against major peers following better-than-expected U.S. GDP data. The dollar index was up 0.4% at 99.29, on course to post its first month of gains this year. The euro extended losses, dropping 0.5% against the dollar.
A divided Federal Reserve voted 9-2 to keep benchmark interest rates steady. The post-meeting statement suggested that growth of economic activity moderated in the first half of the year, although the labor market remains solid.
President Trump announced that India will pay a 25% tariff beginning Aug. 1, in addition to a "penalty" for military and energy purchases from Russia. This rate is modestly lower than the 26% rate he previously announced on "liberation day".
The U.S. and South Korea reached a trade deal setting blanket tariffs at 15%. This represents a decrease from the 25% tariff Trump had previously threatened. Additionally, South Korea will provide $350 billion for investments selected by the President.
China's manufacturing activity pointed to a worse-than-expected contraction in July, marking the fourth consecutive month of decline. The official manufacturing PMI has remained below the 50 mark since April.
President Trump signed an order imposing a universal 50% tariff on copper imports. U.S. copper prices plunged as much as 18% in after-hours trading following the announcement. Major miners like Freeport-McMoRan and Southern Copper saw significant stock declines.
Microsoft shares jumped 9% in extended trading after reporting fiscal fourth-quarter results that beat expectations. The company reported Azure annual revenue topped $75 billion and expects over $30 billion in capital expenditures in the next quarter.
Meta shares jumped more than 10% after reporting a second-quarter revenue beat. Advertising revenue for the quarter reached $46.56 billion. The company raised its third-quarter sales forecast to between $47.5 billion and $50.5 billion.
Qualcomm reported fiscal third-quarter earnings that beat Wall Street expectations. Net income was $2.66 billion for the quarter ending in June. However, the company expects to lose Apple as a modem customer in the coming years.
Arm Holdings shares dipped as much as 9% in after-hours trading. CEO Rene Haas confirmed that the company is "consciously deciding to invest more heavily" in technology and is considering designing its own processors.
Albemarle posted a surprise second-quarter profit due to sustained lithium demand, causing shares to surge over 6%. Net sales were $1.33 billion, which was above analysts' expectations despite being lower than last year.
Foxconn is taking a 10% stake in TECO to form an alliance focusing on the AI data center market. The partnership combines TECO's expertise in energy storage with Foxconn's AI server manufacturing.