(Sharecast News) - Asia-Pacific markets closed mixed on Thursday as investors assessed the latest Big Tech earnings, the Federal Reserve's decision to leave interest rates unchanged and renewed hostilities in the Middle East.
The Fed's decision pushed longer-dated Treasury yields higher, with the 30-year yield rising nine basis points to above 5.2% after reaching its highest level since 2007 a day earlier, according to CNBC.
Attention later turns to US jobless claims, June PCE inflation and the first estimate of second-quarter GDP.
"Markets have moved from questioning whether central banks will hike to questioning whether they are leaning too heavily on the bond market to do the work for them," said Patrick Munnelly, market strategy partner at TickMill.
"The Fed held rates unchanged, but three hawkish dissents and chair Warsh's awkward attempt to outsource tightening to market rates triggered an aggressive bear-steepening in Treasuries.
"Long bonds are now absorbing the stress that policy rates are not, while the Bank of England faces its own version of the same problem later today."
Stock market fortunes diverge across the region
Japan's Nikkei 225 rose 0.71% to 61,867.43, while the Topix fell 0.54% to 3,952.50.
Advantest gained 10.85%, NEC Corporation rose 8.43% and Hitachi advanced 6.01%.
Consumer confidence improved to 34.9 in July from 33.8, beating expectations of 34.2 and reaching its highest since February, with sentiment strengthening across livelihood, income, employment and durable goods purchases.
China's Shanghai Composite declined 0.62% to 3,804.69 and the Shenzhen Component fell 2.73% to 13,285.80.
Beijing Worldia Diamond Tools dropped 12.67%, Guangzhou Fangbang Electronics lost 11.37% and Raisecom Technology fell 10.04%.
Hong Kong's Hang Seng Index edged up 0.2% to 25,858.88, led by New Oriental Education and Technology, up 18.84%, JD Logistics, which gained 3.62%, and CNOOC, which rose 2.89%.
In South Korea, the Kospi 100 fell 1.76% to 6,804.56, with Samsung Electro-Mechanics down 14.58%, Doosan falling 9.91% and LS Industrial Systems losing 8.24%.
Samsung Electronics slipped 0.72% despite reporting record second-quarter operating profit, up 1,814% year on year, while revenue rose 130% amid strong AI demand.
Manufacturing sentiment in the country improved in July, with the Business Survey Index rising to 82 from 78 and the composite manufacturing sentiment index increasing to 103.2 from 101.2.
"Equity markets are trying to stabilise, but the backdrop remains volatile," Munnelly added.
"Asian stocks swung sharply, with South Korea's Kospi moving between a 5.5% gain and a 2.1% loss as investors processed the Fed, long-end yield pressure and ongoing turbulence in chip stocks.
"The broader regional mood remains fragile after the recent AI unwind, even if forced selling appears less one-directional than earlier in the week."
Australia's S&P/ASX 200 dropped 0.78% to 8,967.70.
Liontown Resources fell 10.86%, Champion Iron lost 8.82% and IperionX declined 8.41%.
Dwelling approvals rose 7.2% month on month in June to 18,328, against expectations for a 1% decline, as approvals for private-sector dwellings excluding houses rebounded 17.8% and approvals for private houses edged up 0.4%.
Total approvals were 8.9% higher year on year.
Across the Tasman Sea, New Zealand's S&P/NZX 50 declined 1.53% to 13,762.78, with Ryman Healthcare down 4.37%, Infratil falling 3.91% and A2 Milk Company losing 3.42%.
The ANZ Business Outlook Index surged to 56.1 in July from 36.6, its strongest since February, while firms' own activity expectations rose to 49.3 from 36.9.
Export, profit, investment and employment intentions all strengthened, while pricing, cost and inflation expectations eased.
Dollar mixed as oil gives up some gains
In currency markets, the dollar rose 0.04% against the yen to JPY 163.47, but fell 0.22% against the Australian dollar to AUD 1.4346 and declined 0.52% against the New Zealand dollar to NZD 1.7164.
Brent crude slipped 0.08% to $90.67 a barrel and West Texas Intermediate fell 0.63% to $83.93.
Reporting by Josh White for Sharecast.com.
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