Asian Markets Struggle Amid AI Trade Jitters and Fed Uncertainty

Asian stocks faced challenges amid concerns over AI trade and uncertainty from the Federal Reserve, which maintained steady interest rates. Meanwhile, escalations in the Middle East affected Brent futures. Highlights include a deep selloff in South Korean stocks and a sharp rise in Samsung Electronics' operating profit, impacting regional sentiment.

Asian stocks navigated a challenging Thursday, nursing significant weekly losses as investors grappled with uncertainties surrounding the AI trade. Simultaneously, a split decision by the Federal Reserve to keep interest rates steady left the bond market in limbo over future rate directions.

Brent crude futures dipped below $90 per barrel, following a 7% surge amid escalating Middle East tensions, though tanker movements remained unaffected by missile strikes. As the U.S. central bank maintained its rate, the dollar took a defensive stance while U.S. Treasury yields climbed to 19-year highs.

The spotlight on Asian chipmakers intensified, following a major selloff in South Korea that erased over $2 trillion from its equity market. South Korea's KOSPI tried to recover with a 4% rise on Thursday but is still facing a significant weekly decline, prompting officials to address investor concerns over leveraged ETFs.