Global Market Update: Semiconductor Stocks Soar, Asian Markets Mixed, Fed Officials Discuss Inflation Control

The global stock market saw mixed results on Thursday as the future for the S&P 500 was up 0.5%, while that for the Dow Jones Industrial Average was nearly unchanged. In Asian trading, semiconductor-related issues were lifted by the news that Nvidia’s profit skyrocketed above forecasts, with quarterly net income climbing more than sevenfold from a year earlier to $14.88 billion.

Taiwan’s Taiex hit a record high, gaining 0.3% to close at 21,607.43, while Japan’s benchmark Nikkei 225 gained 1.3% to finish at 39,103.22. Semiconductor-related companies led the advance, with tool-maker Disco Corp. jumping 8% and chip test equipment maker Advantest Corp. surging 5.4%.

However, Australia’s S&P/ASX 200 sank 0.5% to 7,811.80, and South Korea’s Kospi fell nearly 0.1% to 2,721.81 as the central bank kept its policy rate unchanged, as expected. Chinese shares also fell back as investors questioned whether a fresh flurry of policies to help the troubled property sector will suffice to end the industry’s crisis. Hong Kong’s Hang Seng slipped 1.7% to 18,868.71, while the Shanghai Composite shed 1.3% to 3,116.39.

On Wednesday, the S&P 500 fell 0.3% and the Dow Jones Industrial Average sank 0.5%, while the Nasdaq composite slipped 0.2%. The latest minutes of the U.S. Federal Reserve’s policy meeting showed Fed officials suggesting it “would likely take longer than previously thought” to get inflation fully under control following disappointingly high readings early this year.

The Fed is trying to balance slowing the economy just enough through high interest rates to control inflation without causing a recession. Central banks around the world seem eager to cut interest rates, but they may not go far given how well economies are doing and how high inflation still is.

In other trading, U.S. benchmark crude rose 3 cents to $77.60 a barrel, while Brent crude, the international standard, rose 7 cents to $81.79 a barrel. The U.S. dollar fell to 156.77 Japanese yen from 156.80 yen, and the euro rose to $1.0842 from $1.0824.