Asian markets mixed; fed holds rates, Middle East tensions lift oil

July 30, 2026 (MLN): Asian markets were mixed in early Thursday trading as investors assessed the U.S. Federal Reserve’s decision to keep interest rates unchanged, higher oil prices and renewed tensions in the Middle East.

Japan’s Nikkei 225 fell 0.25%, while the broader Topix declined 0.59%. South Korea’s Kospi gained 0.89% at the open following a sharp decline in the previous session, while the small-cap Kosdaq slipped 0.73%. Australia’s S&P/ASX 200 was down 0.26%, according to CNBC.

U.S. equity futures moved higher, with Dow Jones Industrial Average futures gaining 70 points, or 0.14%. S&P 500 futures rose 0.35%, while Nasdaq 100 futures advanced 0.78%.

Japan’s Nikkei futures pointed to a stronger opening, with the Chicago futures contract at 61,635 and the Osaka contract at 61,040, compared with the previous close of 61,434.19. Hong Kong’s Hang Seng futures stood at 25,959 against the index’s previous close of 25,807.92.

S&P/ASX 200 futures traded at 8,945, compared with the previous close of 9,038.60.

Wall Street suffered a sharp decline in the previous session, with the Dow tumbling 1,153.18 points, or 2.19%, marked its steepest drop since April 2025. The S&P 500 fell 1.52%, while the Nasdaq Composite lost 1.74% and ended more than 10% below its intraday record.

Investors were also reacting to mixed Big Tech earnings. Meta Platforms dropped 7% in extended trading after providing a weaker revenue outlook, while Microsoft surged 8% on strong growth in its Azure cloud business.

The results highlighted different outcomes from the companies’ artificial intelligence investment strategies.

The Federal Reserve’s decision to leave interest rates unchanged also remained in focus. The decision pushed long-term Treasury yields higher, with the 30-year yield jumping 10 basis points to above 5.2%, its highest level since 2007.

Markets are now looking toward key U.S. economic data due Thursday, including weekly jobless claims, the June personal consumption expenditures price index and the first estimate of second-quarter real GDP.

Economists expect headline PCE inflation to rise 3.7% annually, while core inflation is projected at 3.3%.

Middle East tensions added another layer of uncertainty after President Donald Trump threatened a strong response against Iran following a reported missile attack by Iran’s Revolutionary Guard on U.S. forces in the region. The renewed hostilities have also contributed to higher oil prices.

The U.S. earnings season will remain active, with Bristol-Myers Squibb scheduled to report before the market opens, while Amazon, Apple and Coinbase are due to release results after the close.

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