Asia-Pacific markets opened mixed on Thursday, July 30 amid higher oil prices after President Donald Trump threatened to hit Iran hard, while investors also assess the US Federal Reserve’s decision to hold benchmark rates steady. Japan’s Nikkei 225 slipped 0.25% at the open but quickly pared losses to trade 1.5% higher along with Hong Kong’s Hang Seng index, which is up 2% in early trade. South Korea’s Kospi gained 0.89% at the open but pared gains to trade lower after a sharp drop on Wednesday, while the small-cap Kosdaq lost 0.73%. Australia’s benchmark S&P/ASX 200 was 0.26% lower.
Shares of Samsung Electronics rose 1.6% in morning trade, after the multinational tech giant’s second-quarter operating profit beat estimates on soaring AI demand. The South Korean tech company posted a record second-quarter operating profit, up 1,814% year on year, while revenue rose 130%. Profit jumped over 56% from the previous quarter, while revenue climbed more than 28%. Both operating profit and revenue were in line with Samsung’s forecast released earlier this month.
US-Iran conflict
Trump said the US will hit Iran hard in retaliation for an attempted surprise attack on American forces in the Middle East. Iran “is going to get a beating” after its Revolutionary Guard launched ballistic missiles at US forces, Trump told Fox News on Wednesday. International crude oil prices held on to most of the previous session’s gains as escalating geopolitical tensions in the Middle East and shrinking US crude inventories reinforced concerns over global energy supplies.
Global benchmark Brent crude traded near $90 per barrel, after surging almost 8% in the previous session, its biggest daily gain in more than two weeks. West Texas Intermediate (WTI) hovered just below $84 a barrel, supported by renewed fears that the conflict between the US and Iran could further disrupt energy flows. US crude stockpiles have hit a multi-year low.
US Fed Verdict
The US Federal Reserve has decided to maintain status quo for now, in line with the market’s expectations. The Federal Open Market Committee (FOMC), in its second meeting held under the chairmanship of Kevin Warsh, voted to keep the benchmark lending rates unchanged in the range of 3.5%-3.75%. The FOMC decision was driven by the looming concerns over inflation, which has persistently stayed above the Fed’s medium-term target of 2%.The voting was not unanimous, as nine members backed the decision to hold rates steady, whereas three differed with the majority’s opinion
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