Asian markets climb on AI optimism, lower oil prices

October 28, 2026 (MLN): Asian markets traded higher on Wednesday, tracking overnight gains on Wall Street as renewed optimism over artificial intelligence (AI) stocks and declining oil prices improved investor sentiment.

Japan’s Nikkei 225 gained 0.74%, while the broader Topix index advanced 0.32%. South Korea’s Kospi rose 2.06% at the open, while the small-cap Kosdaq index climbed 1.78%. Australia’s S&P/ASX 200 also advanced 0.84%, according to CNBC.

The positive sentiment followed a strong session on Wall Street, where major US stock indexes closed higher on Tuesday. Technology shares led the gains, supported by renewed interest in AI-related investments.

Chipmakers advanced after Broadcom disclosed that a group of banks would provide $63 billion in financing for the purchase of its chips and networking solutions, which would be leased to Anthropic, the company behind the Claude AI platform.

Broadcom gained 4%, while Advanced Micro Devices climbed 5.5% and Micron Technology rose 2.8%. The gains helped lift the Nasdaq Composite by 1.2%.

Lower oil prices also supported equities, with crude falling for a second consecutive session on Tuesday amid renewed diplomatic efforts to ease tensions in the Middle East.

Reports of discussions within Iran over conditions for ending the war with the United States further contributed to the decline in oil prices.

Investors are now turning their attention to the US Federal Reserve’s monetary policy decision, scheduled for Wednesday. The central bank is widely expected to maintain its benchmark interest rate within the current target range of 3.75% to 4%, following a quarter-percentage-point increase in September.

According to the CME FedWatch tool, markets are pricing in approximately a 92% probability that the Fed will leave rates unchanged.

However, investors will also assess comments from Fed Chair Kevin Warsh for indications of whether further rate increases could be considered in upcoming meetings.

Corporate earnings will provide another key focus, with Alphabet and Microsoft scheduled to report results after Wednesday’s market close. Their earnings are expected to draw attention to the strength of AI-related investment and its potential to sustain growth in technology stocks.

Technology shares have faced pressure in recent weeks amid concerns about how AI infrastructure investments are being financed.

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