Diverging Tech Earnings and Central Bank Decisions Steer Asian Markets

Asian stocks maintain stable ranges following mixed tech earnings from Microsoft and AMD, pointing to a varied AI scenario. Central banks, notably the Fed and BOJ, dominate market focus, influencing investor sentiment amid geopolitical tensions. The yen strengthens ahead of BOJ's potential rate hikes and bond tapering plans.

Asian stocks held steady on Wednesday, showing mixed results from tech giants like Microsoft and chipmaker AMD, signaling a split in the AI sector's outlook. Meanwhile, the yen remained robust as investors awaited the Bank of Japan's policy decision.

The focus for investors is on central bank decisions, including the Federal Reserve's anticipated rate status and potential indications of future rate cuts. On the other hand, the Bank of Japan is likely to outline plans to taper its extensive bond purchasing program and may discuss interest rate hikes.

Geopolitical concerns, such as escalating tensions in the Middle East, are also influencing market sentiment. The yen's recent strength, its best performance since November 2022, reflects a range of factors, including potential official interventions and a reassessment of carry trades. Market focus remains on the outcome of the BOJ's meeting and its implications for monetary policy.

(With inputs from agencies.)