Asia markets mixed; Nikkei, Kospi hit record highs

June 18, 2026 (MLN): Asian markets traded mixed on Thursday, with major benchmarks in Japan and South Korea climbing to fresh record highs, while markets in Hong Kong and Australia remained under pressure as investors assessed the U.S. Federal Reserve’s latest policy outlook.

Japan’s benchmark Nikkei 225 surged 1.79%, crossing the 71,000-point mark for the first time in history. The broader TOPIX advanced 1.48%, reflecting strong investor confidence in Japanese equities, according to CNBC.

In South Korea, the KOSPI gained 0.89% to reach a new record high, supported by technology stocks. Chipmaker SK Hynix rose 3.45% to a fresh peak, while Samsung Electronics added 1.23%. However, the small-cap KOSDAQ slipped 0.5%.

Elsewhere in the region, Australia’s S&P/ASX 200 fell 0.29%, while Hong Kong’s Hang Seng Index declined 0.76%. Mainland China’s CSI 300 traded largely unchanged.

Investor sentiment remained cautious following the U.S. Federal Reserve’s policy meeting, where policymakers left the benchmark federal funds rate unchanged at 3.50%-3.75%.

However, updated economic projections indicated a more hawkish outlook, with several officials now expecting higher interest rates in 2026.

The Fed’s latest “dot plot” showed the median year-end 2026 policy rate rising to 3.8% from 3.4% projected in March, signaling the possibility of at least one rate increase next year.

The meeting was also notable as it marked the first policy decision chaired by Kevin Warsh, who did not submit an individual interest-rate forecast.

The prospect of tighter monetary policy weighed heavily on Wall Street overnight. The Dow Jones Industrial Average dropped 507 points, or 0.98%, after touching a record intraday high earlier in the session.

The S&P 500 lost 1.21%, while the Nasdaq Composite declined 1.34%.

U.S. Treasury yields moved higher as investors adjusted expectations for future monetary policy, with the two-year Treasury yield climbing to 4.22%.

Despite the sell-off in equities, U.S. stock futures edged higher in early Thursday trading. Futures linked to the S&P 500 and Nasdaq 100 gained 0.2% and 0.4%, respectively, while Dow futures rose by more than 70 points.

Investors are now awaiting corporate earnings from Accenture and Kroger, alongside key U.S. economic data including initial jobless claims, the Philadelphia Fed manufacturing survey, and leading economic indicators for May.

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