Asian Stocks Rise, Treasuries Steady Before Fed: Markets Wrap
(Bloomberg) — Asian stocks climbed for a second consecutive day as enthusiasm for the artificial intelligence trade lifted equities ahead of earnings from tech megacaps and the Federal Reserve’s interest-rate decision.
The MSCI Asia Pacific Index rose 0.8%, led by a 4.5% jump in South Korea’s Kospi Index. That came after SK Hynix Inc.’s stock climbed following a stronger-than-expected sevenfold surge in profit. The chipmaker is planning a total of 100 trillion won ($75 billion) in shareholder returns for 2026.
The optimistic tone came as Alphabet Inc. and Microsoft Corp. prepared to report earnings Wednesday, while Amazon.com Inc. is set to announce on Thursday.
Elsewhere, global crude oil benchmark Brent pared some of its losses from the previous two sessions as traders assessed efforts to de-escalate tensions in the Persian Gulf. The commodity rose 0.4% to around $114.35 a barrel. Treasuries were little changed, while the dollar held its gains from the previous two sessions.
Optimism around the AI trade rebounded this week after a recent rout in chip stocks, but it faces a key test from megacap tech earnings in the next few days. Investors are also awaiting the Fed’s rate decision for clues on the policy outlook as elevated bond yields and persistent inflation complicate the case for lower borrowing costs.
“A wave of AI news sparked a relief rally after three weeks of pressure on the group,” Michael O’Rourke, chief market strategist at JonesTrading Institutional Services LLC, wrote in a note. That news has “offered solace to investors that the large-scale AI firms can, and are proceeding to spend even if smaller firms are under pressure.”
In geopolitical news, Israeli Prime Minister Benjamin Netanyahu and opposition leader Gadi Eisenkot are neck and neck in the first election since the 2023 Hamas attacks, setting up a tense period of negotiations over who will form the next government.
Elsewhere, gold held its gains from the previous session, when bullion jumped 1.1% to about $4,060 an ounce.
On Tuesday, a US gauge of chipmakers jumped 3.6%, sending Wall Street benchmarks higher. Meta Platforms Inc.’s $25 billion share sale was five times oversubscribed, while Oracle Corp. expanded its partnership with OpenAI.
The main focus on Wednesday will be the Fed decision. The Fed will be followed by rate decisions from the European Central Bank and Bank of Japan this week.
The Fed is expected to keep rates steady, even after inflation data for September came in hotter than expected.
If they do stay put, Chairman Kevin Warsh could face pressure to explain policymakers’ rationale for not acting now after they voted unanimously last month to raise rates to address burgeoning inflation.
On Tuesday, data showed US consumer confidence unexpectedly rose in October for the first time in four months, buoyed by brighter views on the labor market and business conditions. The reading topped all forecasts in a Bloomberg survey of economists.
The “moderate rebound in US consumer sentiment and decline in oil prices seem to have supported risk sentiment going into a busy week of central bank decisions,” said Dan Pan, an Americas economist at Standard Chartered Bank. “A hawkish hold seems to be the baseline but we would argue that the market might be underestimating the risks for a hike.”
Corporate Highlights:
Jio Platforms Ltd.’s $3.1 billion India-record initial public offering has attracted stellar demand across investor categories ahead of its Oct. 28 market debut. Solidigm Inc., an American subsidiary of the South Korean memory-chip maker SK Hynix Inc., is in talks with the US Commerce Department to invest $45 billion in a new US chip plant, according to people familiar with the negotiations. Banks are planning to sell as much as about $21 billion of high-grade bonds as soon as early next year as part of a $63 billion funding package that Broadcom Inc. has pulled together to help finance chips for AI developer Anthropic. Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 9:49 a.m. Tokyo time Hang Seng futures rose 0.3% Japan’s Topix rose 0.4% Australia’s S&P/ASX 200 rose 0.5% Euro Stoxx 50 futures fell 0.1% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was unchanged at $1.1125 The Japanese yen was little changed at 157.84 per dollar The offshore yuan was little changed at 6.6659 per dollar The Australian dollar rose 0.3% to $0.7045 Cryptocurrencies
Bitcoin was little changed at $80,623.21 Ether was little changed at $2,341.85 Bonds
The yield on 10-year Treasuries was little changed at 5.00% Japan’s 10-year yield advanced one basis point to 2.805% Australia’s 10-year yield advanced four basis points to 5.19% Commodities
West Texas Intermediate crude rose 0.5% to $100.40 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.
©2026 Bloomberg L.P.
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