Asian Stocks Gain as AI Optimism Returns — Update

By Megan Cheah

Asian equities gained Wednesday, buoyed by stronger sentiment from investors turning more sanguine about major artificial-intelligence names as the earnings season gets underway.

A revival of AI-related enthusiasm appeared to boost U.S. stocks on Tuesday ahead of results from large technology companies, said Commonwealth Bank of Australia's Ashwin Clarke in a note. Major names set to report results this week include Google parent Alphabet and Amazon, which both closed higher.

The next round of tech earnings, along with Fed guidance and inflation prints, could show whether rising costs of the AI buildout prompt further repricing, said Nuveen analyst Laura Cooper in a note.

In Asia, South Korean chip maker SK Hynix posted blockbuster earnings Wednesday, with net profit tripling for the third quarter. The company, one of the region's most prominent weather vanes for the AI infrastructure build-out, also disclosed plans to return $75 billion to shareholders.

SK Hynix's return package seems massive, said Josh Gilbert, lead Asia-Pacific analyst at eToro. "This is what investors had been yearning for, because it gives them something concrete to hold on to beyond the record numbers and handing back that much capital shows management's confidence that the cash will keep flowing," he said.

SK Hynix's shares rose 10% on Wednesday afternoon, supporting a 6.4% rise in the country's benchmark Kospi. SK Hynix and fellow chip maker Samsung Electronics make up more than half of the index's weight. Samsung's stock was last 9.0% higher.

Regional indexes also climbed, with Japan's Nikkei Stock Average rising 1.3% and Taiwan's Taiex adding 1.5%. Chip stocks such as Advantest and TSMC also advanced.

Hong Kong's Hang Seng Index rose 0.4% and China's Shanghai Composite Index was last 0.7% higher.

Government bond yields were broadly higher as traders awaited the Federal Reserve's October policy statement later Wednesday. The 30-year Treasury yield gained 2.25 basis points to 5.3275%, while the 10-year yield added 2.45 basis points, LSEG data showed. Japan's 10-year government bond yield rose 4.1 basis points, while Australia's 10-year yield was up 4.6 basis points.

Market attention is fixed on central bank guidance, including from the Fed, said ANZ Research analysts. While market pricing suggests that the Fed is likely to skip tightening now but to raise its rates in December, "we still see polarized assessments of inflation at the Fed," the analysts said, noting that Chairman Kevin Warsh has indicated "a laser focus on returning inflation to target."

The higher yields likely weighed on gold, with spot prices last 0.5% lower at around $4,040 an ounce. Elevated debt yields typically raise the opportunity-cost of holding nonyielding assets like the yellow metal.

Oil futures gained in Asia. While prospects of diplomatic talks eased tensions in the Middle East, they have failed to generate any meaningful selling interest, as traders are increasingly focused on what is happening on the ground, ANZ Research analysts said.

Supply risks to crude continue to increase, the analysts said, adding that Saudi Arabia said it had contained a fire near its biggest export terminal at Ras Tanura following an attack on the region.

Front-month West Texas Intermediate and Brent crude-oil futures were each 1.4% higher at $101.33 a barrel and $115.45 a barrel, respectively, ICE data showed.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

October 28, 2026 01:01 ET (05:01 GMT)