Fed's Split Decision Leaves Markets in Turmoil

Asian markets struggled to find direction on Thursday as investors remained uncertain about the outcome of US Federal Reserve policy. The Fed held its benchmark interest rate steady, but the decision was seen as a split one, leaving bond markets unclear about future moves.

The greenback came under pressure after the announcement, while yields on longer-dated US Treasuries rose to 19-year highs. This has left investors worried about inflation and the potential for further rate hikes.

Asian chipmakers have been at the center of attention this week, with South Korea's market losing over $2 trillion in value due to concerns about returns from massive AI spending. The Kospi dropped 0.6% in choppy trading on Thursday, on track for a 15% weekly slump.

Samsung Electronics reported a record operating profit jump of 19 times in the second quarter, helping lift investor sentiment. However, earnings reports from Meta and Microsoft highlighted sharply contrasting fortunes for companies investing heavily in AI infrastructure.