29/10/2026 10:14 AST
Technology stocks surged across Asia on Wednesday after blockbuster earnings from chip giant SK hynix boosted optimism in the artificial intelligence trade ahead of results from Microsoft and Alphabet. Oil prices rose as investors watched results from Israel's election, which could shape the future of the war with Iran.
After a wobble this month caused by fresh worries about huge investment spending, profitability and company finances, AI-linked firms were back on the front foot. SK hynix said its third-quarter operating profit soared 632 percent to $62.8 billion on explosive demand for its advanced semiconductors, its sixth straight quarter of record revenue and operating profit.
"While Wall Street argues over whether the AI arms race can keep financing itself, SK hynix has just reminded the market that somebody on the other side of all that capex is receiving the cheque," said Stephen Innes of SPI Asset Management.
The results added to optimism after AI company Anthropic said in its IPO filing on Monday that its first-half revenue had surged about 1,300 percent, and flagged heavy capital spending ahead. On Tuesday, Broadcom, together with Citi, Blackstone and Morgan Stanley, announced a $63 billion financing structure to build new computing capacity for Anthropic.
Shares in SK hynix soared almost 9 percent, and South Korean rival Samsung, which reports on Thursday, added more than 8 percent, pushing Seoul's Kospi index up more than 6 percent. Tokyo's Nikkei 225 climbed more than 1 percent, with chipmaker Kioxia up more than 10 percent, Advantest 3 percent and Tokyo Electron 4 percent. Taipei rose sharply on gains in TSMC, while Hong Kong, Shanghai, Sydney, Singapore and Wellington also rose, tracking the Nasdaq's gain of more than 1 percent in New York.
Microsoft and Alphabet report later on Wednesday, with Amazon, Apple and Intel following on Thursday. Traders are also awaiting the Federal Reserve's policy decision on Wednesday. The Fed is expected to hold rates after last month's hike, but investors will scrutinize its statement and comments from Chair Kevin Warsh for clues to its plans. Markets expect a hike in December.
Crude prices rose more than 1 percent as Israel's election results came in. Polls appeared to show Netanyahu's governing Likud and the opposition neck and neck. Netanyahu vowed to form a new coalition and said he could work with US President Donald Trump to eliminate the "existential threat" posed by Iran, while opposition candidate Gadi Eisenkot said the country had chosen change and that he would seek to form a new government.
Key figures at around 0230 GMT:
Tokyo - Nikkei 225: UP 1.3 percent at 64,067.10 (break) Seoul - Kospi: UP 6.1 percent at 5,983.53 Hong Kong - Hang Seng Index: UP 0.1 percent at 23,053.92 Shanghai - Composite: UP 0.4 percent at 3,664.26 West Texas Intermediate: UP 1.2 percent at $101.14 per barrel Brent North Sea crude: UP 1.5 percent at $115.61 per barrel Euro/dollar: DOWN at $1.1124 from $1.1138 on Tuesday Pound/dollar: DOWN at $1.3301 from $1.3316 Dollar/yen: UP at 157.95 yen from 157.90 yen Euro/pound: DOWN at 83.62 pence from 83.64 pence New York - Dow: FLAT at 52,377.57 (close) London - FTSE 100: DOWN 0.8 percent at 10,686.54 (close)
AFP
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