Mixed Trend in Asian Stocks: Fed and Middle East Tensions Divide Markets

Asian financial markets are navigating a mixed trajectory, burdened by the uncertainty surrounding the Federal Reserve's interest rate decision and escalating geopolitical risks in the Middle East, shifting investor focus toward central bank policies and tech giants' balance sheets.

Fed's Rate Decision and Regional Tensions

Following the Federal Open Market Committee (FOMC) meeting, the policy rate was kept steady within the expected range of 3.50-3.75%. The decision was split with a vote of 9 to 3.

■Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan dissented in favor of a rate hike.

■Rising tensions in the Middle East are pushing oil prices higher, exacerbating inflationary pressures.

■Signals of a "very harsh" intervention against Iran from US President Donald Trump are curbing risk appetite.

Samsung's Chip Surge and Market Paradox

South Korean tech giant Samsung Electronics delivered a record performance in the second quarter, surpassing estimates with its operating profit, reflecting the surge in AI demand.

■Operating profit surged by 1800% year-on-year to a record high, while revenues rose by 130%.

■On a quarterly basis, profit increased by over 56% and revenue by over 28%.

■Agreements have been finalized with the world's top 5 data center clients, with 5 more major customers in final stages of negotiation.

■The company predicts the chip shortage could persist until 2028.

Despite this, concerns over the sustainability of AI spending and selling pressure in chip shares caused Samsung Electronics stock to surrender its gains, having risen by 8% intraday.

Regulatory Measures and Market Closes

The South Korean government pledged measures to restrict individual investors' access to leveraged exchange-traded funds (ETFs), while regional indices closed as follows:

■South Korea's Kospi index fell 1.2% to 5,593 points.

■Japan's Nikkei 225 index gained 0.7% to 61,866 points.

■China's Shanghai Composite index decreased 0.6% to 3,805 points.

■Hong Kong's Hang Seng index rose 0.2% to 25,858 points.

■India's Sensex index was up 0.1% at 77,682 points.

Although the Fed's "rate hold" stance was largely priced in, internal divergences and the pressure of external shocks (oil/geopolitics) on inflation suggest that liquidity costs will not decrease in the near term. Samsung's record profits on the chip side serve as a fundamental anchor for markets worried about the sustainability of tech investments; however, uncertainties in global trade continue to limit this optimism.