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Asian equities climbed on Tuesday October 27, following Wall Street's rally after Anthropic filed for an initial public offering (IPO) and renewed investor appetite for artificial intelligence. Traders also seemed to be positioned ahead of major technology earnings and the US Federal Reserve's rate decision. Markets in Japan and South Korea led the advance as South Korea's Kospi surged 3.82%, while Japan's Nikkei 225 gained 1.94% and the broader Topix added 0.58%.
MSCI's Asia Pacific equities index rose 0.6% while Hang Seng futures barely moved. Also Read: Apple stock has become an anti-AI trade. Here’s why In India, GIFT Nifty, which signals how the domestic market may open, pointed to a start in the red for the day.
The Japanese yen held at 157.53 per dollar, and the offshore yuan stayed at 6.6676 per dollar. Also Read: US markets post gains but cool from highs after Meta fund raise, HSBC downgrade Futures on US equity indices also edged higher in early trading. On Wall Street, the S&P 500 finished 0.7% higher and the Nasdaq 100 climbed 1.1%.
The Philadelphia Semiconductor Index jumped 2.8%, its sharpest daily gain since September 21. The Nasdaq 100 had dropped 2.9% on Thursday, a day after Meta lifted its capital-spending guidance above operating cash flow. Several large technology firms announced funding plans, which fuelled the mood.
Meta Platforms said it wanted to raise up to $95 billion by selling common and preferred shares, among the largest equity offerings on record. It made the announcement two hours before Anthropic's filing. Broadcom arranged a $63 billion financing deal with Bank of America, Blackstone, Citigroup, and Morgan Stanley to pay for chips destined for Anthropic.
SpaceX also signed a roughly $40 billion equipment-finance lease with Apollo Global Management to buy the chips its AI plans require. Alphabet and Microsoft report their earnings on Wednesday, followed by Amazon.com and Intel on Thursday. Investors seemed to focus on whether the spending is producing adequate returns.
The US Federal Reserve also meets on Wednesday as policymakers are widely expected to hold rates after raising them in September. Chairman Kevin Warsh must reaffirm the bank's commitment to curbing inflation and explain why officials chose not to raise rates again. In commodities, Brent crude extended its decline after settling near $115 a barrel on Monday.
Senior officials from several countries travelled to Tehran to try to revive talks aimed at preventing a wider escalation in West Asia as per media reports. With Agency Inputs Tags Home / Market News / Asian stocks rally as AI lifts Wall Street; Fed, big tech earnings in focus, Kospi up over 4%
Source: CNBC TV18
