Asian equities rise on AI optimism as dollar steadies ahead of Fed decision
Asian stock markets gained on renewed AI enthusiasm while the dollar remained near a two-week high before the Federal Reserve's policy announcement.
Asian equities climbed on Wednesday as investors revived interest in artificial-intelligence stocks ahead of earnings reports from major U.S. technology companies. SWBC Chief Investment Officer Chris Brigati said the market is now focusing less on headline earnings and more on whether AI-related capital spending will generate sustainable revenue growth. He added that the broad market rally is giving way to concerns about execution risk and price-to-earnings expectations.
Shares of SK Hynix rose about 3% after the open before settling 1.75% higher. U.S. futures were largely unchanged and EUROSTOXX 50 futures slipped slightly.
The dollar index held near a two-week high at 102.37 against six major currencies as traders awaited the Federal Reserve's policy decision, which is widely expected to be unchanged. JPMorgan analysts noted that market participants will likely scrutinize Chair Kevin Warsh's remarks, with a lack of detailed explanation potentially being interpreted as dovish.
The New Zealand dollar fell more than 1% after the Reserve Bank of New Zealand left its policy rate unchanged, contrary to market expectations. The Australian dollar gained 0.25% to $0.7043 following data showing a sharp rise in consumer prices in the third quarter, while core inflation remained elevated. The Israeli shekel weakened after exit polls indicated a deadlocked wartime election.
In commodities, Brent crude futures rose 0.47% to $114.42 a barrel and U.S. crude increased 0.55% to $100.45. Spot gold was steady at $4,057.95 an ounce.