Asian markets gain after Fed holds interest rates steady

October 29, 2026 (MLN): Asian markets traded mostly higher on Thursday, following gains on Wall Street after the U.S. Federal Reserve kept interest rates unchanged, while investors monitored corporate earnings and lingering geopolitical risks in the Middle East.

Japan’s Nikkei 225 gained 0.42%, while the broader Topix slipped 0.38%. South Korea’s Kospi fell 2.14%, and the small-cap Kosdaq declined 2.75%.

Australia’s S&P/ASX 200 advanced 0.46%, while Hong Kong’s Hang Seng index remained flat. Mainland China’s CSI 300 dropped 1.20%, according to CNBC.

U.S. stock futures and Asian market sentiment followed a positive session on Wall Street, where the S&P 500 advanced for a third consecutive day on Wednesday.

The Nasdaq Composite edged up 0.3%, supported by gains in semiconductor stocks, with Micron Technology rising nearly 6% and Broadcom climbing more than 2%.

In after-hours trading, Microsoft shares rose 3% after the company reported better-than-expected revenue and earnings for its fiscal first quarter, supported by growth in its Azure cloud infrastructure business. In contrast, Alphabet shares fell 9% after its third-quarter adjusted earnings per share and revenue missed market expectations.

The company also reported negative free cash flow of $9.07 billion while maintaining its full-year capital expenditure forecast of $195 billion to $205 billion.

Investor attention remains focused on the artificial intelligence sector, where semiconductor-related investments have experienced considerable volatility throughout October before recovering in recent sessions.

The Federal Reserve kept its benchmark interest rate unchanged within a range of 3.75% to 4% at its October meeting on Wednesday. Policymakers highlighted that inflation remained elevated and indicated they would assess additional economic data before deciding on further policy action.

The decision showed a cautious approach amid persistent inflationary pressures, with markets assessing the possibility of further monetary tightening.

Investors are now awaiting the September Personal Consumption Expenditures price index, the Federal Reserve’s preferred inflation gauge, alongside the first estimate of third-quarter gross domestic product and weekly jobless claims, all scheduled for release on Thursday.

Meanwhile, geopolitical uncertainty continues to weigh on investor sentiment. The Wall Street Journal reported that the United States had warned Gulf Arab countries to prepare for a possible short but intense military campaign against Iran following the U.S. midterm elections, keeping concerns over the Middle East conflict in focus.

Corporate earnings will remain another key driver of market activity, with quarterly results from Caterpillar and Eli Lilly due before the U.S. market opens, followed by reports from Amazon and Intel after the closing bell.

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