Asian stock markets surged on Wednesday, echoing the record gains recorded on Wall Street the day before. Investor confidence is buoyed by optimism surrounding artificial‑intelligence technology and expectations of a U.S. interest‑rate cut. The Federal Reserve is widely expected to announce a 0.25‑percentage‑point reduction in lending rates on Wednesday, a move that has helped extend the bull market.
Additional optimism stems from the prospect of a deal that could avert a damaging trade war between the world’s two largest economies. U.S. President Donald Trump is scheduled to meet Chinese President Xi Jinping in South Korea and has expressed confidence that an agreement can be reached. This development has further lifted sentiment on Wall Street, where AI leader Nvidia jumped 5 percent on Tuesday. Analysts say there is little concern about holding tech risk ahead of the Fed meeting, which is expected to have a modest impact on markets. “It’s the tech show, and this is where capital remains firmly centered,” said Chris Weston of Pepperstone.
Japan’s benchmark index rose more than 2 percent on Wednesday morning, while South Korea’s market surged over 1 percent, both hitting record highs. Taipei and Shanghai posted modest gains, whereas Sydney’s main index fell and Hong Kong was closed for a public holiday. The rally has accelerated ahead of anticipated earnings reports from major U.S. tech giants such as Microsoft and Meta.
This year’s AI boom coincides with a wave of global tariffs driven by U.S. policy, which has hit China particularly hard. Trump expects “a lot of problems are going to be solved” during his first in‑person discussion with Xi since returning to the White House. The leaders will meet on Thursday on the sidelines of the APEC summit in Gyeongju. As the global economy watches the outcome, the direction of the trade war and its impact on the tech sector will be closely scrutinized. Current market trends and forthcoming developments will be pivotal in shaping the future of the global economy.
Key figures around 02:30 GMT: the Tokyo Nikkei 225 is up 2.0 % at 51,234.49; the Shanghai Composite is up 0.1 % at 3,992.49. West Texas Intermediate is flat at $60.15 per barrel, while Brent crude is up 0.1 % at $64.43. The euro/dollar is down at $1.1643, the pound/dollar at $1.3261, and the dollar/yen at 152.11 yen. The euro/pound is unchanged at 87.80 pence. The New York Dow is up 0.3 % at 47,706.37, and the London FTSE 100 is up 0.4 % at 9,696.74.
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