Asian Stocks Rally on AI Optimism Ahead of Fed Decision

Asian markets rose on Wednesday, tracking Wall Street’s record highs as AI enthusiasm and tech earnings fueled risk appetite.

Nvidia surged after revealing $500 billion in AI chip bookings and plans to build seven U.S. supercomputers, while Microsoft gained after approving OpenAI’s restructuring into a public benefit corporation, taking a 27% stake in the ChatGPT maker.

That momentum lifted Asia, with Japan’s Nikkei jumping over 2% to a record high, South Korea’s Kospi hitting new peaks, and China’s CSI300 rising 0.7%.

Investors now await the Federal Reserve’s rate decision, with a 25-basis-point cut widely expected. Markets will also watch for hints that the Fed could end quantitative tightening, which would signal a dovish turn.

Meanwhile, optimism over a potential U.S.–China trade truce added to the upbeat tone as President Trump continued his Asia tour.

In currency markets, the dollar firmed slightly, while the yen weakened ahead of the Bank of Japan’s policy meeting on Thursday. Oil prices edged lower, and gold hovered near $4,000, pressured by improved risk sentiment.