Asian stock markets mostly moved higher on Wednesday, supported by strong gains in technology shares in Japan and South Korea. Investor sentiment was also cautiously optimistic ahead of the U.S. Federal Reserve’s interest rate decision later in the day.
Meanwhile, U.S. stock futures edged slightly higher during Asian trading hours after Wall Street ended the previous session with modest gains.
Tech rally lifts Nikkei and KOSPI
Technology stocks led the regional rally, fueled by renewed optimism around artificial intelligence following major announcements at Nvidia’s GTC 2026 event. Chipmakers benefited from new partnerships and product launches tied to next-generation AI computing.
South Korea’s KOSPI surged 4%, with major tech players such as Samsung Electronics and SK Hynix posting gains of between 4.5% and 6%.
Japan’s Nikkei 225 rose 2.5%, while the broader TOPIX index gained over 2%, reflecting strong demand for tech and export-oriented stocks.
Oil price pullback supports sentiment
A slight decline in crude oil prices during early trading provided additional support to equities, easing concerns over inflation and energy costs.
However, geopolitical risks remained elevated. Ongoing tensions in the Middle East continued to weigh on market sentiment, as Israel reportedly killed Iran’s security chief and Iran responded with renewed strikes on oil facilities in the United Arab Emirates. These developments have heightened concerns over potential supply disruptions through the Strait of Hormuz.
Fed decision in focus, BOJ next
Markets remained cautious ahead of the Federal Reserve’s policy announcement, with expectations that interest rates will remain unchanged. Investors are particularly focused on comments from Fed Chair Jerome Powell for insights into inflation risks and the future path of monetary policy.
In Japan, stronger-than-expected export data pointed to resilient external demand, offering further support to local equities.
Attention is also turning to the Bank of Japan, which is set to announce its policy decision on Thursday, with markets assessing the pace of any further policy normalization.
Mixed performance across Asia
Elsewhere in the region, Singapore’s Straits Times Index rose 1%, while India’s Nifty 50 futures gained 0.5%.
In contrast, Chinese markets lagged, with the Shanghai Composite falling 0.4% and Hong Kong’s Hang Seng Index slipping 0.2%.
Australia’s S&P/ASX 200 rose 0.3%, following a widely expected 25 basis point interest rate hike by the country’s central bank in the previous session.
