TOKYO (AP) – Asian shares predominantly declined on Thursday as investors adopted a cautious stance in regional markets, following the Federal Reserve's recent decision to maintain its key interest rate unchanged. Fed Chair Jerome Powell indicated that interest rates are currently at a suitable level, which was widely anticipated.

In the commodities market, gold surged by 4%, reaching a price of $5,520 per ounce, while silver increased by 3.5%. Concurrently, the dollar weakened against the Japanese yen, and oil prices observed a rise in value.

Despite some technology companies reporting robust earnings, the share prices in Tokyo lagged, with the Nikkei 225 index experiencing a 0.2% dip, landing at 53,274.71. Advantest, a maker of computer chip testing equipment, saw its shares soar by 6.7% after announcing better-than-expected earnings. However, other technology firms generally faced losses.

The earnings season is in full swing, with major Japanese corporations such as Toyota Motor Corp, Sony Corp, and Nintendo Co. set to unveil their financial results next week.

In the broader Asian market, South Korea's Kospi index rose by 0.9% to reach a new record of 5,218.81, buoyed by a 2% increase in shares of computer chip maker SK Hynix, following its strong earnings report. Meanwhile, Hong Kong's Hang Seng index recorded a slight gain of 0.3% to 27,905.24, while the Shanghai Composite index fell by 0.1% to 4,147.15. Australia's S&P/ASX 200 also saw a reduction, dropping by 0.6% to 8,883.30.

Notably, the JSX in Jakarta plummeted by 7.4%, following a warning from MSCI, a U.S. provider of global equity, fixed income, and real estate indices, regarding market risks in Indonesia.

The U.S. market reaction to the Fed's decision was relatively muted on Wednesday, with the S&P 500 slipping by less than a point to close at 6,978.03 points. The Dow Jones Industrial Average recorded a minor increase of 12 points, or less than 0.1%, finishing at 49,015.60, while the Nasdaq composite rose by 0.2% to 23,857.45.

Seagate Technology reached a significant milestone with a 19.1% jump in its shares, marking the largest gain within the S&P 500 after the data-storage company reported a quarterly profit that surpassed analyst expectations. Nvidia, a prominent player in the AI industry, saw a modest 1.6% increase, providing the most substantial support for the S&P 500, whereas Apple’s shares fell by 0.7%, becoming the heaviest drag on the index.

In foreign exchange markets, the U.S. dollar stabilized after Treasury Secretary Scott Bessent stated in a CNBC interview that the U.S. government is not intervening in the currency market and aims for a strong dollar. The dollar depreciated to 152.99 Japanese yen, down from 153.42 yen, while the euro floated at $1.1983, slightly up from $1.1955.

Market analyst Stephen Innes from SPI Asset Management commented that a somewhat firmer yen is beneficial for domestic manufacturing concerns in the U.S., while even a symbolic acknowledgment from the Fed can buy time and credibility in Tokyo. Additionally, the yield on the 10-year Treasury remained stable at 4.24% as it was on late Tuesday.

Previously, the Fed had cut interest rates multiple times last year to support the job market. However, inflation continues to exceed its 2% target. Lower interest rates could exacerbate inflation while providing an economic boost, potentially further undermining the value of the dollar, which would favor U.S. exporters. Notably, former President Trump has been advocating for lower interest rates aggressively.

In energy trading, the price of benchmark U.S. crude rose by 76 cents, reaching $63.97 a barrel, while Brent crude, the international standard, increased by 68 cents to stand at $68.05 a barrel.