Asian shares rise on AI optimism as markets await Fed decision
South Korea's Kospi jumped more than 3%, while the dollar index remained near a two-week high before the US policy announcement.
Asian equities advanced on Oct 28 as renewed interest in artificial intelligence lifted technology shares before earnings announcements from Alphabet and Microsoft. Currency markets were also awaiting a Federal Reserve policy decision, with interest rates widely expected to remain unchanged.
In early trading, the MSCI index tracking Asia-Pacific equities excluding Japan gained 0.85%, while Japan's Nikkei rose 1.2%. SK Hynix shares initially climbed 3% before easing to a gain of 1.75%, after the South Korean chipmaker reported quarterly operating profit had increased more than seven-fold.
AI-related funding announcements by Meta, SpaceX and Broadcom, alongside Anthropic's initial public offering filing, supported sentiment. Alphabet and Microsoft were due to report after the US market closed.
SWBC chief investment officer Chris Brigati said investors were looking beyond earnings to whether AI capital spending could deliver sustainable revenue growth. He said execution risks and the success already reflected in share prices were becoming more important.
Attention at the Fed meeting was expected to centre on policymakers' guidance as the Middle East war kept inflation concerns in focus. JPMorgan analysts anticipated at least two hawkish dissents. The dollar index stood at 102.37 against six major currencies.
The New Zealand dollar dropped more than 1% following an unexpected decision by the Reserve Bank of New Zealand to hold its policy rate. The Australian dollar gained 0.25% to US$0.7043 after data showed sharp consumer price increases in the third quarter.
Brent futures gained 0.47% to US$114.42 per barrel, while US crude rose 0.55% to US$100.45. Spot gold changed little at US$4,057.95 per ounce.
