Asia-Pacific markets mostly decline as investors weigh easing Middle East tensions

Asia-Pacific markets mostly declined Thursday, as investors continued to weigh the ongoing ceasefire between Israel and Iran.

Japan's benchmark Nikkei 225 rose 1.04% and the Topix added 0.32%.

South Korea's Kospi was down 1.81%, while the small-cap Kosdaq retreated 2%.

Australia's S&P/ASX 200 slipped 0.21%.

Hong Kong's Hang Seng index declined 0.72%, and the CSI 300 fell 0.31%.

U.S. futures were relatively unchanged. S&P 500 futures traded around the flatline, as did Nasdaq 100 futures and futures tied to the Dow Jones Industrial Average.

Federal Reserve Chair Jerome Powell maintained a cautious stance on inflation and tariffs during his second day of Capitol Hill testimony, indicating rate cuts could be considered if the effects prove temporary.

As he did during his testimony Tuesday before the House Financial Services Committee, Powell would not put a timetable on when he thinks further interest rate cuts will be possible, despite the heavy pressure President Donald Trump has exerted to get the Fed to cut rates.

Overnight stateside, the three major averages closed slightly higher. The S&P 500 ended the session near the flatline at 6,092.16 as investors watched to see if the benchmark index could return to its all-time high. The Nasdaq Composite added 0.31% to close at 19,973.55. The Dow Jones Industrial Average slipped 106.59 points, or 0.25%, settling at 42,982.43.

South Korean defense stocks briefly climb on report of enhanced cooperation with NATO

Major South Korean defense stocks briefly climbed early Thursday on reports that the country agreed to establish a consultative body on defense industry cooperation with NATO, before falling in volatile trading.

The fleeting gains broke ranks with the country's Kospi index, which has declined over 1%.

Hanwha Aerospace gained as much as 3.38%, while Hyundai Rotem rose 5.31%. Korea Aerospace Industries was up as high as 2.78%.

South Korean arms have been popular in recent years as defense spending surged, sending shares of the country's defense firms to record highs.

Asian chip stocks climb after Nvidia closes at record high

Semiconductor-related stocks in Asia traded higher after Nvidia shares rose more than 4% stateside and closed at a record for the first time since January.

Semiconductor testing equipment supplier Advantest's shares rose 3.19% as of 8.15 a.m. Singapore time, while technology conglomerate SoftBank — which owns a stake in chip designer Arm — rose 3.42%. Tokyo Electron was also up 0.81%.

Nvidia is now worth $3.77 trillion, making it the largest company in the world by market cap, slightly beating out Microsoft, one of its main customers. Apple comes third at about $3 trillion.

S&P 500 closes near the flatline

The S&P 500 closed little changed on Wednesday, but remains within arms reach of its record high.

The broad market index was flat to finish the session at 6,092.16, while the Nasdaq Composite gained 0.31% to 19,973.55. The Dow Jones Industrial Average slipped 106.59 points, or 0.25%, to close at 42,982.43.

Powell keeps cautious tone on rates during Senate testimony

Federal Reserve Chair Jerome Powellin his second day of Capitol Hill testimony stuck to his cautious approach to tariffs and inflation, saying there will be room for rate cuts if the impact is temporary.

“It's a risk. We feel like, as the people who are supposed to keep stable prices for the benefit of the American people, we can manage that risk too,” the central bank leader said in an appearance before the Senate banking committee. “That's all we're doing. We're not deciding what to do yet.”

As he did during his testimony Tuesday before the House Financial Services Committee, Powell would not put a timetable on when he thinks further interest rate cuts will be possible, despite heavy pressure President Donald Trump has exerted to get the Fed to cut rates.

Earlier in the day, Trump called Powell “terrible” in a talk with reporters, and said he has three or four candidates in mind as a replacement, according to multiple media reports.

Despite the political pressure, most of the questions Powell faced during the two-day mandated hearing were cordial. Sen. Bernie Moreno (R-Ohio) was one of the few to take an overtly hostile one.

“You're costing this government $400 billion a year by refusing to lower interest rates,” Moreno said. “Nobody in this chamber has that kind of power to have a $400 billion impact on our economy. I just think you should consider whether you're really looking through a political lends because you don't like tariffs.”

Echoing Trump's criticism, Moreno said, “We got elected by millions of voters, you got elected by one person. He doesn't want you in that job.”