[MARKET ANALYSIS] Asia-Pac stocks are mostly subdued after big tech earnings beats failed to spur risk appetite

APAC Stocks: Mostly lower

• Asia-Pac stocks are mostly lower with sentiment in the region clouded following a lack of fireworks at the FOMC, where the Fed kept rates unchanged at 3.50%-3.75%, as expected, while top and bottom line earnings beats from the likes of Meta, Microsoft and Tesla also failed to spur the broader risk appetite.

ASX 200: -0.5%

• Retreated with the index dragged lower by underperformance in telecoms and miners, while a surge in exports and import prices adds to the inflationary risks and the case for an RBA rate hike next week.

Nikkei 225: -0.1%

• Failed to sustain early gains and dipped into negative territory amid currency-related headwinds and earnings results.

KOSPI +0.7%

• Swung between gains and losses amid fluctuations in tech heavyweights Samsung Electronics and SK Hynix despite both posting stellar earnings results.

Hang Seng & Shanghai Comp: Hang Seng +0.1% / Shanghai Comp -0.1%

• Chinese markets are mixed with price action relatively flat amid a lack of fresh pertinent macro catalysts for China.

US Equity Futures: Mixed

• Index futures struggle for direction following the mixed reaction to the earnings beats from the first of the Mag 7 results.

European Equity Futures +0.1%

• Indicate a positive cash market open with Euro Stoxx 50 futures up 0.1% after the cash market closed with losses of 1.0% on Wednesday.

The subdued performance in Asia-Pac stocks illustrates a disconnect between strong earnings from major tech firms and broader market sentiment. Despite impressive results from companies like Microsoft and Meta, the anticipated risk-on behavior hasn’t materialized, likely influenced by the Fed's status quo on interest rates and inflationary concerns in Australia. This suggests investors remain cautious, weighing macroeconomic indicators against corporate performance, impacting risk appetite across global equities.