Asian shares rallied as AI optimism and a more than seven-fold rise in SK Hynix's third-quarter operating profit lifted sentiment ahead of Alphabet and Microsoft earnings. The dollar held near a two-week high before the Federal Reserve's decision, while the Reserve Bank of New Zealand left rates unchanged and the kiwi fell more than 1%.
Asia-Pacific shares outside Japan rose 0.85% in early trading on Wednesday, Japan's Nikkei added 1.2% and South Korea's KOSPI jumped more than 3%. SK Hynix reported a more than seven-fold increase in quarterly operating profit; its shares were last up 1.75% after rising as much as 3%. Investors were watching for Alphabet and Microsoft earnings after the US market close, focusing on whether AI spending can translate into sustainable revenue growth.
Investors widely expected the Federal Reserve to keep rates steady at its policy decision later Wednesday, with attention on policymakers' outlook for interest rates. JPMorgan analysts anticipated at least two hawkish dissents. The dollar index held near a two-week high at 102.37.
The New Zealand dollar fell more than 1% after the Reserve Bank of New Zealand unexpectedly left its policy rate unchanged. The Australian dollar rose 0.25% after data showed third-quarter consumer prices rose sharply as fuel costs jumped, while core inflation remained uncomfortably hot.
