Asian technology stocks surged Wednesday following blockbuster earnings from chip giant SK hynix, amid renewed optimism in the artificial intelligence trade. SK hynix announced that its third-quarter operating profit soared 632% to US$62.8bn (€54.2bn), marking record revenue and operating profit for six consecutive quarters, which the firm attributed to explosive demand for its advanced semiconductors. Stephen Innes at SPI Asset Management noted that the earnings reminded the market that "somebody on the other side of all that capex is receiving the cheque."
The positive report added to sector optimism after Anthropic, the parent company behind Claude AI, stated in its IPO filing that its first-half revenue surged about 1,300% and flagged heavy capital spending ahead. This was followed by Broadcom announcing, alongside Citi, Blackstone, and Morgan Stanley, a US$63bn (€54.4bn) financing structure to build new capacity for Anthropic. Shares in SK hynix rose almost 9% on Wednesday, contributing to a rise of more than 6% in Seoul's Kospi index.
South Korean rival Samsung, which reports Thursday, added more than 8% to the gains. Gains were also seen across other Asian markets; Japan's Nikkei 225 climbed more than 1%, with Kioxia soaring more than 10%. Taipei rose sharply due to strong performance from chipmaker TSMC. Investors are awaiting key US tech earnings from Microsoft and Alphabet later in the day, as well as the Federal Reserve's policy decision.
The Fed is expected to hold rates steady, but market focus remains on the post-meeting statement and comments from Chair Kevin Warsh regarding future moves, with markets currently pricing in a rate hike in December. Separately, crude prices jumped more than 1% as results from Israel's general election were released. Prime Minister Benjamin Netanyahu vowed to form a new coalition, adding that he could work with US President Donald Trump to eliminate the "existential threat" posed by Iran.
