Most Asian bourses moved higher on Wednesday as robust advances in technology and AI-related stocks outweighed pockets of caution ahead of a widely anticipated Federal Reserve interest rate decision later in the day. Positive momentum in global tech names and fresh record levels on Wall Street helped underpin buying across the region.
U.S. equity benchmarks had logged recent gains, with the S&P 500 reaching record highs and the Nasdaq enjoying several positive sessions. U.S. stock index futures were trading higher as of 22:20 ET (03:20 GMT), with the tech-heavy Nasdaq futures up about 0.6% as investors positioned ahead of a busy corporate earnings slate.
Earnings spotlight - technology and AI
Attention in markets was concentrated on megacap U.S. technology results due later in the day. Microsoft Corporation (NASDAQ:MSFT), Meta Platforms Inc (NASDAQ:META), and Tesla Inc (NASDAQ:TSLA) were scheduled to report, with Apple Inc (NASDAQ:AAPL) set to release results on Thursday. Investors were seeking evidence in those reports for ongoing AI-driven revenue strength and indications about capital expenditure trends tied to data-centre investment.
Across Asia, semiconductors and data-centre related companies outperformed as market participants positioned for potentially upbeat results tied to AI demand.
Regional market moves
- South Korea’s KOSPI rose as much as 2%, supported by gains in major components; Samsung advanced about 1.5% while SK Hynix gained roughly 5%.
- Hong Kong’s Hang Seng climbed approximately 2.4%, with the Hang Seng TECH sub-index up near 1.5%.
- In mainland China, the Shanghai Shenzhen CSI 300 and the Shanghai Composite each added about 0.5%.
- Futures tied to India’s Nifty 50 moved up around 0.3%.
Fed decision and currency dynamics
Markets were also closely monitoring the Federal Reserve, which was widely expected to leave interest rates unchanged at its meeting later on Wednesday. Traders planned to scrutinise the policy statement and remarks by Chair Jerome Powell for guidance on the potential timing of rate cuts later in the year - any shift in tone could affect risk appetite and currency valuations across Asian markets.
Not all regional markets followed the rally. Singapore’s FTSE Straits Times Index eased about 0.5%, and Australia’s S&P/ASX 200 was slightly lower by roughly 0.2%.
In Japan, the Nikkei 225 fell around 0.6% while the TOPIX declined about 1%, pressured by a firmer yen that was trading near its highest levels in roughly three months amid speculation about possible U.S.-Japan foreign-exchange intervention. That currency strength increases the overseas cost of Japanese goods and can reduce profits when foreign earnings are repatriated, exerting downward pressure on the country’s export-heavy benchmark. Still, losses in Japan were limited by sharp rises in some AI-focused names, including Renesas Electronics Corp (TYO:6723) and tech investor SoftBank (TYO:9984).
Market context
Overall, the regional advance reflected a mix of anticipation for strong tech earnings, persistent demand tied to AI and data-centre investment, and careful attention to U.S. monetary policy signals. Investors appeared to be weighing near-term corporate results against the backdrop of central bank policy that could influence the path for rates and risk assets later in the year.