Asian Stocks Gain on Tech Rally Ahead of Fed Policy Decision

Tech-Led Gains in South Korea and Japan

Asian trading was broadly positive, with technology stocks providing the main support. South Korea’s KOSPI surged 4%, boosted by Samsung Electronics and SK Hynix, which rose between 4.5% and 6%. The rally followed fresh announcements at Nvidia GTC 2026 that reinforced optimism over artificial intelligence demand, with chipmakers benefiting from new partnerships and next-generation computing product unveilings.

In Japan, the Nikkei 225 climbed 2.5%, while the broader TOPIX index also added more than 2%. Japanese equities were further supported by data showing exports grew faster than expected, indicating resilient external demand. This economic backdrop, combined with global tech momentum, provided additional support for Japanese shares.

Elsewhere in the region, Singapore’s Straits Times Index gained 1%, and futures tied to India’s Nifty 50 rose 0.5%. Australia’s S&P/ASX 200 advanced 0.3%, a day after the Reserve Bank of Australia raised interest rates by 25 basis points in a widely anticipated move. Chinese markets underperformed the regional trend, with the Shanghai Composite index dipping 0.4% and Hong Kong’s Hang Seng index edging down 0.2%.

U.S. stock index futures also moved slightly higher during Asian hours, after major U.S. benchmarks closed marginally higher overnight, reflecting continued investor interest in technology and AI-related themes.

Policy Uncertainty and Geopolitical Risks

Investor focus remained firmly on the U.S. Federal Reserve, which is due to announce its policy decision later on Wednesday. Market expectations point to interest rates being held steady, but with a continued hawkish stance. Participants are closely watching comments from Chair Jerome Powell for signals on how policymakers assess rising inflation risks linked to higher oil prices.

Oil markets were in focus as crude prices eased slightly in early Wednesday trade, providing some relief to risk assets. However, geopolitical risks stayed elevated. Israel killed Iran’s security chief, while Iran renewed strikes on oil facilities in the United Arab Emirates, underscoring the potential for prolonged supply disruptions through the Strait of Hormuz.

Attention is also turning to the Bank of Japan, which is scheduled to announce its rate decision on Thursday. Markets are assessing the pace of policy normalization in Japan, particularly in light of stronger export data and ongoing global monetary tightening.

FAQ

Which Asian markets gained the most on Wednesday?
South Korea’s KOSPI was the strongest performer, rising 4%, while Japan’s Nikkei 225 climbed 2.5% and the TOPIX added more than 2%.

What drove the rally in technology stocks?
The rally was supported by optimism over AI demand following announcements at Nvidia GTC 2026, including new partnerships and next-generation computing product unveilings that benefited chipmakers.

What are investors expecting from the U.S. Federal Reserve?
Markets largely expect the Federal Reserve to keep interest rates unchanged while maintaining a hawkish tone, with close attention on Chair Jerome Powell’s comments regarding oil-driven inflation risks.

How did Chinese and Australian markets perform?
China’s Shanghai Composite index fell 0.4% and Hong Kong’s Hang Seng index slipped 0.2%, while Australia’s S&P/ASX 200 rose 0.3% following a 25-basis-point rate hike by the country’s central bank.