Tech Stocks Rally After Hynix Earnings, Oil Gains: Markets Wrap
(Bloomberg) — Tech shares climbed across Asia, led by those in South Korea, after blowout earnings from chip heavyweight SK Hynix Inc. prompted investors to charge back into the artificial intelligence trade.
The Kospi Index — a barometer for the AI trade — climbed 6.6% and was set for its biggest rally in three months. SK Hynix shares surged 11% after the chipmaker unveiled plans to return about $45 billion more to shareholders. Samsung Electronics Co. advanced 9%, helping lift the broader MSCI Asia Pacific Index by 1.3%.
Confidence in the AI trade has recovered after a recent rout in chip stocks, with megacap tech earnings in the next few days set to test whether the rebound has staying power. The Federal Reserve’s decision later Wednesday will provide another test as traders seek guidance on the path for rates, with elevated bond yields and persistent inflation complicating the case for lower borrowing costs.
In India, Jio Platforms Ltd. shares surged 21% in its trading debut. Nasdaq 100 Index futures gained 0.5%, extending the tech rally ahead of earnings from Alphabet Inc. and Microsoft Corp. Contracts indicated a modest loss for European shares after a slew of bank earnings.
Elsewhere, Brent snapped a two-day losing streak after the Wall Street Journal reported that the US told several Gulf countries to be prepared for a short, intense military campaign after the midterm elections. The report cited people briefed on the conversations. The global oil benchmark advanced 1.8% to trade around $115.90 a barrel.
“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.”
Technology shares have rallied this week after Anthropic’s S-1 filing and a host of fundraising plans.
What Bloomberg’s Strategists Say…
“Investors betting that an AI-fueled rally can power through the Federal Reserve decision will take confidence from SK Hynix and Samsung Electronics leading Asia higher. It recalls the first half of the year, when enthusiasm for AI themes appeared impervious to rising oil prices and higher bond yields.”
— Mark Cranfield, MLive Strategist. Click here for the full analysis.
In geopolitical news, Israeli Prime Minister Benjamin Netanyahu and opposition leader Gadi Eisenkot were 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, a Bloomberg gauge of the dollar’s strength headed for a fourth day of gains. Gold slipped 0.7% to about $4,030 an ounce.
The New Zealand dollar slumped almost 2% against the Aussie — the most since 2017 — after the country’s central bank surprisingly left interest rates unchanged.
The yield on the benchmark 10-year Treasury rose two basis points to 5.02% as traders awaited the Fed announcement.
The Fed is expected to keep rates steady, even after inflation data for September came in hotter than expected. Wednesday’s rate decision is set to be followed by policy announcements from the European Central Bank and Bank of Japan later this week.
If the Fed does stay put, Chairman Kevin Warsh may face pressure to explain policymakers’ rationale for not acting now after they voted unanimously last month to raise rates to address burgeoning inflation.
Projections released last month signaled Fed officials supported one additional hike this year, a forecast Warsh is likely to be asked about when he speaks to reporters after the meeting. Investors on Tuesday saw less than a 10% chance of a quarter-point move this week, but priced in a hike at the final policy meeting of the year in December.
“The language from the FOMC will remain hawkish and vigilant on inflation,” said Damien McColough, head of fixed income research at Westpac Banking Corp. “That, including any refocusing of the markets attention on the price of oil, should provide a bearish impetus.”
Corporate Highlights:
European earnings: UBS Group AG posted profit broadly in line with expectations; Deutsche Bank AG’s revenue from fixed-income trading declined in the third quarter; BNP Paribas SA reported a surge in revenue from equities trading and announced a new share buyback; Santander reported net income that met the average estimate; Equinor reported adjusted operating income after tax that beat the average estimate; Standard Chartered Plc reported profit that beat analysts’ estimates; Heineken NV’s volumes grew more than expected. ASM International NV increased its revenue target for next year by about 24%, setting up the chip-equipment maker to hit its 2030 goal three years ahead of schedule, on a surge in sales linked to AI investments. Anthropic PBC has tapped JPMorgan Chase & Co. to lead US sales of shares to individual investors in its potentially record-setting initial public offering, people familiar with the matter said. OpenAI intends to buy artificial intelligence computing chips from Alphabet Inc.’s Google, according to a person familiar with the matter. Nomura Holdings Inc.’s profit rose last quarter, led by wealth management, stock trading and investment banking. Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 6:50 a.m. London time Nasdaq 100 futures rose 0.5% The MSCI Asia Pacific Index rose 1.3% The MSCI Emerging Markets Index rose 2% Hong Kong’s Hang Seng rose 0.2% The Shanghai Composite rose 0.8% Euro Stoxx 50 futures fell 0.2% Currencies
The Bloomberg Dollar Spot Index rose 0.1% The euro was little changed at $1.1117 The Japanese yen was little changed at 157.90 per dollar The offshore yuan was little changed at 6.6657 per dollar The British pound fell 0.2% to $1.3281 Cryptocurrencies
Bitcoin rose 0.1% to $80,783.31 Ether rose 0.4% to $2,350.46 Bonds
The yield on 10-year Treasuries advanced three basis points to 5.02% Japan’s 10-year yield advanced three basis points to 2.825% Australia’s 10-year yield advanced six basis points to 5.21% Commodities
Spot gold fell 0.7% to $4,029.94 an ounce West Texas Intermediate crude rose 1.8% to $101.68 a barrel This story was produced with the assistance of Bloomberg Automation.
–With assistance from David Finnerty.
©2026 Bloomberg L.P.
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