Asian stocks Rally as SK Hynix Earnings Lift AI Optimism
Asian stocks advanced on Wednesday, October 28, 2026, led by South Korean semiconductor shares after SK Hynix reported sharply higher quarterly operating profit. The results reinforced confidence in demand for memory chips used in artificial intelligence infrastructure.
Overnight gains in U.S. technology shares also supported sentiment. However, investors remained cautious ahead of the Federal Reserve’s interest rate decision and earnings from Alphabet and Microsoft, which could help determine whether the recovery in Asian stocks continues.
South Korean Chipmakers Lead Asian stocks Higher
South Korea’s KOSPI rose more than 6% during Wednesday’s session as investors responded to SK Hynix’s earnings and shareholder return plans. SK Hynix and Samsung Electronics both advanced sharply, supporting the broader market.
According to SK Hynix’s quarterly earnings release, third-quarter operating profit rose approximately 632% year on year, reflecting strong demand for AI memory products. The company also outlined additional shareholder returns, with its planned total for 2026 reaching approximately 100 trillion won.
The rally highlighted the influence of semiconductor earnings on Asian stocks. Investors continue to assess whether growing demand for advanced memory can support profitability as manufacturers expand production capacity.
AI Optimism Supports Technology Shares
According to AFP, Anthropic’s initial public offering filing helped strengthen confidence in the AI sector. Together with SK Hynix’s results, the development supported expectations for continued investment in computing infrastructure and advanced chips.
Nevertheless, the outlook for Asian stocks remains sensitive to the economics of AI expansion. Investors are seeking evidence that spending on data centres and computing capacity can generate sustainable revenue growth and sufficient financial returns.
Federal Reserve Decision Remains a Key Market Test
Investors were also awaiting the Federal Reserve’s policy announcement on Wednesday, U.S. time. The decision and accompanying guidance could influence borrowing costs, equity valuations and demand for risk-sensitive assets.
Technology shares can be particularly sensitive to interest rate expectations because their valuations often depend on anticipated future earnings. For Asian stocks, changes in the expected U.S. policy path could either support sentiment or increase volatility.
Alphabet and Microsoft Earnings Draw Attention
Alphabet and Microsoft were scheduled to release quarterly results after the U.S. market close on Wednesday. Investors were expected to examine cloud computing growth, AI-related business performance, capital expenditure and management guidance.
Stronger earnings and evidence of improving returns on infrastructure spending could support Asian stocks exposed to the AI supply chain. Weaker results or higher spending without corresponding revenue growth could renew concerns about the sector’s profitability.
Market Outlook: Earnings Momentum Meets Policy Uncertainty
Asian stocks have gained support from semiconductor earnings and renewed confidence in AI demand. The durability of the rally may depend on whether corporate results continue to justify growth expectations and whether the Fed’s guidance supports investor appetite for equities.
In the near term, chip demand, technology company spending plans and changes in interest rate expectations are likely to remain important drivers of market sentiment.