Most Asian stock markets rose on Wednesday as strong gains in technology and AI-related shares ahead of key U.S. megacap earnings outweighed caution in some markets before the Federal Reserve’s interest rate decision later in the day.
Regional bourses were lifted by Wall Street’s fresh highs amid optimism around corporate earnings and continued AI demand, with the S&P 500 hitting record highs and the Nasdaq notching gains in recent sessions.
U.S. stock index futures also traded higher as of 22:20 ET (03:20 GMT), with tech-heavy Nasdaq jumping 0.6%.
S.Korea, HK lead gains ahead of US big tech earnings
Asian stock markets mirrored the optimism, with semiconductors and data‑centre related names outperforming as investors positioned for positive earnings and AI–driven growth.
Wednesday’s U.S. earnings calendar features Microsoft Corporation (NASDAQ:MSFT), Meta Platforms Inc (NASDAQ:META), and Tesla Inc (NASDAQ:TSLA) reporting results later in the day, with Apple Inc (NASDAQ:AAPL) due on Thursday.
Markets are watching results for signs of sustained AI‑related revenue strength and capital expenditure trends.
South Korea’s KOSPI jumped as much as 2%, with Samsung rising 1.5% and SK Hynix surging 5%.
Hong Kong’s Hang Seng surged 2.4%, with Hang Seng TECH sub-index climbing 1.5%.
In mainland China, the blue-chip Shanghai Shenzhen CSI 300 and the Shanghai Composite index added 0.5% each.
Futures tied to India’s Nifty 50 index edged 0.3% higher.
Fed decision looms large; Nikkei pressured by stronger yen
Market focus was also firmly on the Fed, which is widely expected to keep interest rates unchanged later on Wednesday.
Traders are watching the policy statement and Chair Jerome Powell’s remarks for clues on the timing of potential rate cuts later this year, with any shift in guidance likely to influence risk appetite and currency markets across Asia.
Bucking the regional trend, Singapore’s FTSE Straits Times Index eased 0.5%, while Australia’a S&P/ASX 200 edged 0.2% lower.
In Tokyo, the Nikkei 225 eased 0.6%, while TOPIX declined 1%, pressured by a strong yen trading near its highest levels in about three months on speculation of possible U.S.–Japan foreign‑exchange intervention.
Still lossed in Japan were limited by sharp rises in AI-related stocks like Renesas Electronics Corp (TYO:6723) and tech investor SoftBank (TYO:9984).
A firmer yen increases the cost of Japanese goods abroad and can reduce overseas profits when repatriated, putting downward pressure on Japan’s export‑heavy benchmark.
Source: Investing