Asian markets moved higher on Wednesday after SK Hynix reported record third-quarter revenue of 104.62 trillion South Korean won and operating profit of 83.33 trillion won. Operating profit increased approximately 632% from a year earlier, reflecting strong demand for advanced memory products used in AI computing systems.

The company also announced plans for around 100 trillion won in shareholder returns during 2026, including dividends and share repurchases. The results reinforced expectations that demand for AI infrastructure is continuing to support semiconductor earnings.

SK Hynix shares gained around 7% to 9% in early trading. Samsung Electronics rose approximately 8.5%, while South Korea’s KOSPI advanced more than 5%. These are early-session figures, not confirmed closing prices.

Asian markets follow semiconductor gains

The rally extended beyond South Korea. Japan’s Nikkei 225 gained around 1.3%, while Taiwan’s Taiex rose approximately 1.8% in early trading.

For traders in Dubai and the wider UAE, the move matters because Asian semiconductor companies supply components used throughout the global technology industry. Strong earnings can support confidence in technology stocks, including US-listed companies linked to AI infrastructure.

However, the rally also raises a valuation question. Strong demand for chips is encouraging, but investors still need evidence that spending on AI infrastructure will translate into sustainable revenue and profits across the wider technology sector.

Big Tech earnings could determine the next move

Investors are turning to Alphabet and Microsoft, which were scheduled to release quarterly results after the US market closed on 28 October.

Traders will be looking beyond headline earnings to AI-related revenue, capital expenditure and management guidance. Strong results and credible growth forecasts could support the Nasdaq 100 and other technology shares. Disappointing results or concerns about spending efficiency could reverse some of the optimism behind the rally.

Fed decision puts the dollar and gold in focus

The Federal Reserve’s policy announcement is another major event for global markets. Before the decision, investors widely expected rates to remain unchanged, making the central bank’s statement and guidance particularly important.

A more hawkish message could lift US Treasury yields and support the dollar, potentially creating pressure for gold and rate-sensitive equities. A more dovish tone could support risk appetite and precious metals, depending on how yields and the dollar respond.

For UAE traders, the dirham’s US dollar peg means dollar movements can also influence the local-currency cost of internationally priced assets, including gold. The direction of gold prices, however, will depend on the combined effect of interest-rate expectations, the dollar and investor demand.

Key Market Impact

  • Asian equities: Semiconductor earnings have strengthened regional technology sentiment.
  • Nasdaq 100: Big Tech earnings and AI spending forecasts could drive the next move.
  • USD: Fed guidance may influence yields and dollar demand.
  • Gold: Watch the dollar and Treasury yields for confirmation of the next direction.
  • Oil: The Fed’s implications for global growth and risk appetite may affect crude prices, although supply developments remain a separate driver.

Trader Insight

The important distinction is between a strong earnings-driven rally and a broader change in market direction. SK Hynix’s results support the AI investment story, but traders should look for confirmation from Microsoft and Alphabet before assuming the rally will continue.

Around the Fed announcement, avoid relying on the first price reaction alone. Changes in Treasury yields, the dollar and equity futures can help establish whether investors are responding positively or negatively to the policy outlook.

What to Watch Next

  • The Fed’s rate decision and policy statement on 28 October.
  • Alphabet and Microsoft earnings and AI investment guidance.
  • Follow-through in SK Hynix, Samsung Electronics and other semiconductor shares.
  • The US dollar and Treasury yields for signals affecting gold.
  • Oil supply developments and global growth expectations.