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 after SK Hynix Inc.’s stock climbed following a stronger-than-expected sevenfold surge in profit.
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. Brent crude rose 0.4% to around $114.35 a barrel as traders assessed efforts to de-escalate tensions in the Persian Gulf. Treasuries were little changed, while the dollar held its gains.
Investors are 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. The Fed is expected to keep rates steady. On Tuesday, data showed US consumer confidence unexpectedly rose in October for the first time in four months.
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. Gold held its gains from the previous session, when bullion jumped 1.1% to about $4,060 an ounce.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing