Asian stocks rose for a second consecutive day, boosted by an AI trading surge, as investors await earnings from tech giants and the Federal Reserve’s interest rate decision. Crude oil prices climbed.
The MSCI Asia Pacific index gained 1.2%. South Korea’s KOSPI led the region with a 6.1% rise. Chipmaker SK Hynix Inc. surged 9% after announcing plans to return an additional $45 billion to shareholders, following a sevenfold profit jump that exceeded expectations. Samsung Electronics Co. advanced 8.5% ahead of its earnings release on Thursday.
Market sentiment remained upbeat ahead of Alphabet Inc. and Microsoft Corp.’s late Wednesday earnings reports, with Amazon set to report the next day.
“An array of news in the AI sector has triggered a rebound, ending three weeks of pressure on the group,” wrote Michael O’Hara, chief market strategist at JonesTrading Institutional Services LLC, in a report. “These developments have reassured investors that major AI companies are capable and continuing to invest, even as smaller firms face challenges.”
Meanwhile, The Wall Street Journal reported that the U.S. has informed several Gulf nations to prepare for a short but intense military operation following the midterm elections. On this news, Brent crude ended a two-day losing streak.
Gold held firm above $4,000 per ounce amid buying at lower levels ahead of the Fed’s rate decision, rising 1.1% from the previous session.
Damien McCollough, head of fixed-income research at Westpac Banking Corporation, said: “The FOMC’s language is expected to remain hawkish, with continued vigilance on inflation. This, combined with renewed market focus on oil prices, could provide downward momentum.”
Plugin Case Examples
Gold: After testing below 3,990, prices strongly rebounded toward 4,070. Our plugin clearly highlighted yesterday the yellow zone signal for liquidity sweep followed by a reversal. Today, prices are likely to retest support around 4,030/50. If this level holds, the next targets are 4,080 and 4,100.
(Gold 15-minute chart)
Nasdaq: Yesterday, our plugin clearly indicated the yellow zone liquidity sweep reversal signal, delivering nearly a 5:1 risk-reward ratio. Today, we continue monitoring liquidity near 29,500.
(Nasdaq 15-minute chart)
Crude Oil: After breaking below 100.20 last night, prices reversed sharply. Our plugin’s yellow zone signal for liquidity sweep followed by a rebound perfectly matched the move. For today’s trading, prioritize locking in overnight long profits while watching for potential liquidity sweeps near 99.
(Crude Oil 15-minute chart)
Today’s Key Economic Data and Events:
02:00 U.S. Federal Reserve Interest Rate Decision (October 28)
02:30 Fed Chair Powell Holds Monetary Policy Press Conference
