Asian Stocks Climb as AI Hopes Lift Tech, Fed Cut Bets Build – Asia Market Wrap

Asian equities advanced as optimism surrounding artificial intelligence buoyed technology shares, with investors betting that megacap earnings this week will reinforce the sector’s profit momentum. Sentiment was further lifted by growing expectations of a Federal Reserve rate cut.

The MSCI Asia-Pacific index climbed 0.4%, led by semiconductor and tech hardware stocks. SK Hynix and Advantest Corp. jumped following upbeat results, propelling Japan’s Nikkei 225 and South Korea’s Kospi higher. Still, in both benchmarks, decliners outnumbered advancers, reflecting some caution beneath the surface. A similar pattern played out in the S&P 500, which notched a record close even as nearly 400 of its components fell.

Nvidia Corp. surged more than 8% in Asian trading on the alternative platform Blue Ocean, hinting at more gains ahead when US markets reopen. The move came after President Donald Trump said he planned to discuss the company’s Blackwell chip with Chinese leader Xi Jinping. S&P 500 futures rose 0.2%, while Nasdaq 100 contracts added 0.4%. European equity futures suggested a slightly softer open.

With five of America’s tech heavyweights — representing nearly a quarter of the S&P 500’s market capitalization — set to report earnings between Wednesday and Thursday, investors are watching whether the massive investment in AI infrastructure will translate into sustained profit growth. Adding to the week’s pivotal lineup, Fed policymakers are expected to announce a quarter-point rate cut on Wednesday, according to market pricing.

Elsewhere, the yen strengthened after US Treasury Secretary Scott Bessent commented on the Bank of Japan’s policy flexibility, fueling speculation of an eventual rate hike. The dollar index edged up after two sessions of declines. Crude oil held near a three-day low amid signs of persistent oversupply, while gold ticked higher after three consecutive losses.