Asian Stock Markets: Tech Stocks Boost Nikkei and KOSPI to Lead Gains; Fed Decision Imminent

Investing.com - On Wednesday, most Asian stock markets rose, with gains in technology stocks boosting the Korean and Japanese markets as investors awaited the Federal Reserve’s policy decision later that evening.

U.S. stock index futures also edged higher during Asian trading hours, following a slight overnight increase in major stock indices.

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Tech Stocks Drive Nikkei and KOSPI Higher

Technology stocks pushed the markets higher, with the latest announcements at Nvidia GTC 2026 reinforcing optimism about demand for artificial intelligence. Chip manufacturers benefited from new partnerships and product launches related to next-generation computing.

The Korea KOSPI index surged 4%, with Samsung Electronics (KS:005930) and SK Hynix (KS:000660) rising between 4.5% and 6%.

Japan’s Nikkei 225 climbed 2.5%, while the broader Topix index also gained over 2%.

Early Wednesday, a slight pullback in crude oil prices supported investor sentiment.

However, geopolitical risks remain elevated. Israel killed an Iranian security official, and Iran launched a new round of attacks on oil facilities in the United Arab Emirates, highlighting the risk of prolonged supply disruptions through the Strait of Hormuz.

Fed Decision Approaching; Bank of Japan to Announce Policy

Markets remain cautious ahead of the Fed’s policy announcement, with expectations that the central bank will hold rates steady but maintain a hawkish stance.

Investors are closely watching Chairman Powell’s comments for signals on how policymakers view rising inflation risks driven by oil prices.

In Japan, data showing exports growing faster than expected indicate external demand remains resilient, supporting the stock market.

Focus is also shifting to the Bank of Japan, which will announce its rate decision on Thursday as markets assess the pace of policy normalization.

In other parts of Asia, the Straits Times Index in Singapore rose 1%, and futures linked to India’s Nifty 50 increased 0.5%.

Chinese markets declined against the trend, with the Shanghai Composite down 0.4% and Hong Kong’s Hang Seng Index falling slightly by 0.2%.

Australia’s S&P/ASX 200 rose 0.3%, after the country’s central bank raised interest rates by 25 basis points the previous day amid widespread market expectations.

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