Asia tech streak takes a timeout, gold keeps climbing

SYDNEY: Asia’s runaway stock markets took a breather on Thursday as mixed earnings out of the tech sector ​stirred caution ahead of Apple’s results, while the dollar looked shaky despite verbal support from both US and European officials.

Gold and silver climbed ‌to all-time highs as investors continued their rush into physical assets, and oil prices hit a four-month top as U.S. President Donald Trump warned Iran of possible attacks if it did not make a deal on nuclear weapons.

The U.S. Federal Reserve kept interest rates on hold as widely expected, while Chair Jerome Powell talked of a “clearly improving” economic outlook and broad support on the committee for a pause.

Powell would not be drawn on whether he would remain as a governor after he steps down as Chair in May, given Trump’s efforts ‌to pressure the Fed into more aggressive cuts.

Investors reacted by further paring the chance of another policy easing by April ​to 26%, with June seen as the next likely window at 61%.

In the meantime, investors have been counting on earnings to keep equities in demand and Samsung Electronics seemed to oblige by tripling its operating profit as the race to build AI capability sent chip prices surging.

Yet with so much already priced in, South Korea stocks slipped 1.2%, having already gained 21% so far this month. The tech-heavy Taiwan market is up almost 14% in the same time period.

Japan’s Nikkei edged down 0.1%, having been held back by wild swings in the yen and a steep rise in bond yields at home. MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.6%.

In Europe, EUROSTOXX 50 futures and FTSE futures ⁠fell 0.2%, while DAX futures eased 0.1%.