Most Asian stock markets rose on Wednesday, with technology shares providing a notable lift to Japanese and South Korean equities as traders awaited a U.S. Federal Reserve policy decision scheduled for later in the day. U.S. index futures in Asian trading were also marginally higher after major U.S. benchmarks closed slightly up overnight.
Technology-led advance
Chip-related momentum underpinned the rally after new announcements at Nvidia GTC 2026 reinforced expectations of sustained AI demand. Partnerships and product unveilings tied to next-generation computing supported sentiment for semiconductor makers across the region.
South Korea's KOSPI surged 4%, with Samsung Electronics (KS:005930) and SK Hynix Inc (KS:000660) each jumping in the range of about 4.5% to 6%. In Japan, the Nikkei 225 rose 2.5% while the broader TOPIX index also gained more than 2%.
Investor confidence received an additional lift from a slight pullback in crude oil prices in early trade on Wednesday, which eased some near-term inflation concerns tied to energy costs.
Geopolitical tensions and central bank focus
Elevated geopolitical risk remained a counterweight to market optimism. The region’s risk premium was underscored after Israel killed Iran’s security chief and Iran renewed strikes on oil facilities in the United Arab Emirates, highlighting the potential for extended disruptions to supply routes through the Strait of Hormuz.
Markets were also cautious ahead of the Federal Reserve decision later in the day, with prevailing expectations that the Fed would hold interest rates steady while maintaining a hawkish tone. Investors were particularly attentive to remarks from Chair Jerome Powell for indications of how policymakers view rising oil-driven inflation risks.
In Japan, data showing exports grew faster than expected suggested resilient external demand, providing additional support for Japanese equities. Attention is likewise turning to the Bank of Japan, which is due to announce its rate decision on Thursday as markets assess the pace of policy normalization.
Regional performance snapshot
- Singapore's Straits Times Index rose about 1%.
- Futures tied to India's Nifty 50 were up roughly 0.5%.
- Chinese equities lagged, with the Shanghai Composite falling about 0.4% and Hong Kong's Hang Seng edging down around 0.2%.
- Australia's S&P/ASX 200 advanced 0.3%, following a 25 basis point rate hike by the country's central bank the previous day.
Overall, technology names led gains in Japan and South Korea, while energy-sensitive sectors remained attentive to geopolitical developments and crude price moves. Central bank decisions in the U.S., Japan and recent moves in Australia ensured that monetary policy remained a central theme for market participants.