Stocks get AI lift, kiwi slides on RBNZ's surprise hold
SPY•Asian stocks rallied on renewed AI enthusiasm ahead of earnings from Alphabet and Microsoft, while the New Zealand dollar fell more than 1% after the Reserve Bank of New Zealand unexpectedly held its benchmark rate at 2.75%.
1. Stocks rise on AI optimism
Asia stocks rallied on Wednesday ahead of earnings from Alphabet and Microsoft. South Korea’s Kospi surged more than 6% after SK Hynix reported a more than seven-fold jump in quarterly profit and said it would return about $75 billion to shareholders this year. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.7%, while Japan’s Nikkei added 1.1% and China’s CSI300 advanced 0.7%.
2. Central bank decisions ahead
The Reserve Bank of New Zealand unexpectedly held its official cash rate at 2.75% in a narrow vote, sending the New Zealand dollar down more than 1% to a session low of $0.5583. Investors were also watching for policy decisions from the Bank of Canada and the Federal Reserve later Wednesday.
3. Oil advances, gold slips
Oil prices rose after an attack on a refinery in Saudi Arabia renewed concerns about supply risks in the Middle East. Brent crude gained 1.4% to $115.47 a barrel, while U.S. crude rose 1.5% to $101.40. Spot gold fell 0.4% to $4,040.32 an ounce.
