Asian stock markets rose on Wednesday, tracking a rebound on Wall Street, as investors continued to navigate sharp swings around artificial intelligence enthusiasm.
Markets appear to be adjusting to what some describe as “AI mood swings” in the US, where heavy spending on AI infrastructure has fueled both optimism and volatility.
The dollar edged slightly lower, US Treasury yields ticked higher, and oil prices gained about 0.6%.
Asia Benefits From AI Hardware Boom
Technology-heavy markets in Asia are outperforming, largely because they produce the equipment and chips powering the AI boom.
- The KOSPI is up nearly 5% this week and has surged 44% in 2026, reaching a fresh record.
- Taiwan’s TWSE has gained 5% this week and about 22% year-to-date.
- Japan’s Nikkei 225 is up roughly 15% this year.
Analysts say South Korea, Taiwan, and Japan are benefiting directly from elevated AI capital expenditure, as their companies supply semiconductors, memory, and advanced manufacturing tools.
Deutsche Bank noted that Japanese investors hold around $2.25 trillion in foreign shares, suggesting even a modest shift back into domestic equities could provide further support for Japanese markets and the yen.
Nvidia Earnings in Focus
Much of the global AI trade now hinges on results from Nvidia, which is due to report earnings later today.
According to LSEG data:
- Quarterly profit is expected to rise 62%
- Revenue is forecast to jump 68%
- First-quarter guidance is projected to increase roughly 64% to $72 billion
Nvidia has beaten revenue forecasts for 13 consecutive quarters, so investors are focused on the scale of the beat. A $2 billion upside surprise is seen as the minimum to sustain momentum.
Options markets imply a potential ±4.8% move in Nvidia shares following earnings. Given its massive size, that would represent a swing of roughly $226 billion in market value.
With a total market capitalization of about $4.7 trillion, Nvidia is now worth more than the annual GDP of Japan or India.
Geopolitics and Energy
AI was briefly mentioned during President Donald Trump’s recent State of the Union address, where he suggested major tech firms may need to build their own power plants to support energy-hungry data centers. Details on implementation were limited.
Oil prices dipped slightly after Trump said he preferred a diplomatic solution with Iran over military escalation, though markets reacted only modestly.
Asian markets are benefiting from the AI infrastructure boom, while US investors remain divided on whether heavy AI spending will boost profits or compress margins.
For now, hardware exporters in Asia are riding the wave, but global sentiment may hinge on Nvidia’s earnings and whether AI momentum can justify its soaring valuations.
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