MANILA – Thursday saw a mixed performance in Asian markets, following the U.S. stock market’s near-record highs spurred by the Federal Reserve’s reduction of its primary interest rate.

Meanwhile, U.S. futures experienced a decline, and oil prices remained relatively stable.

The rate cut by the Fed was largely anticipated, but remarks from Fed Chair Jerome Powell fueled optimism for additional cuts in 2026.

Conversely, several Asian tech stocks faced significant downturns after Oracle, a leading figure in the AI industry, reported earnings that fell short of expectations. The company’s stock plummeted by 11.5% in after-hours trading, with concerns arising over the financial implications of its aggressive AI investments.

In Japan, the Nikkei 225 index slipped by 1% to 50,087.11, driven down by a 6.8% decrease in shares of SoftBank Group Corp., a prominent AI investor.

Local shares are under pressure from growing expectations that the Bank of Japan will raise interest rates at its meeting next week.

Hong Kong’s Hang Seng edged 0.1% higher, to 25,564.87 after the Hong Kong Monetary Authority followed the Fed’s lead and trimmed borrowing costs to 4.00%, their lowest rate since October 2022. The Shanghai Composite index fell 0.5% to 3,882.72.

Sentiment was cautious ahead of China’s November credit data. New yuan loans fell sharply in October, missing forecasts and showing weaker consumer demand.

Australia’s S&P/ASX 200 added 0.2% to 8,596.40 after three days of decline, boosted by strength in gold and mining stocks. The country’s seasonally adjusted unemployment rate in November was unchanged from October at 4.3%, below the expected 4.4%

In South Korea, the Kospi shed gains in early session, falling 0.3% to 4,121.68. Taiwan’s Taiex index fell 1.3%, while India’s BSE Sensex was slightly higher.

On Wednesday, the S&P 500 climbed 0.7% to 6,886.68 and finished just shy of its all-time high, which was set in October. The Dow Jones Industrial Average jumped 1% to 48,057.75 and the Nasdaq composite rose 0.3% to 23,654.16.

Wall Street loves lower interest rates because they can boost the economy and send prices for investments higher, even if they potentially make inflation worse.

Wednesday’s cut to interest rates did not move markets much by itself. But some investors took heart from comments by Powell, which they said were less forceful about shutting down the possibility of future cuts than they had been anticipating.

Powell said again on Wednesday that the central bank is in a difficult spot, because the job market is slowing while inflation is facing upward pressure. By trying to fix one of those problems with interest rates, the Fed usually worsens the other in the short term.

Powell also said for the first time in this rate-cutting campaign that interest rates are back in a place where they’re pushing neither inflation nor the job market higher or lower. That gives the Fed time to hold and reassess what to do next with interest rates as more data comes in on the job market and on inflation.

On Wall Street, GE Vernova flew 15.6% higher after the energy company raised its forecast for revenue by 2028, doubled its dividend and increased its program to buy back its own stock. Palantir Technologies added 3.3% while Cracker Barrel Old Country Store rose 3.5%.

In other dealings early Thursday, U.S. benchmark crude oil slid 6 cents to $58.40 per barrel. Brent crude, the international standard, lost 7 cents to $62.14 per barrel.

The U.S. dollar fell to 155.90 Japanese yen, from 156.02 yen. The euro slipped to $1.1688 from $1.1696. __

AP Business Writers Stan Choe and Matt Ott contributed.