Asian stocks edged higher on Wednesday, as global markets rally as enthusiasm for artificial intelligence shares and expectations of US interest rate cuts boosted investor sentiments.Japan’s Nikkei traded at 51,097, at 10:00 AM IST, adding 878 points, after jumping over 1,000 points. Shanghai and Shenzhen rose 0.37% and 0.9%, respectively. South Korea’s Kospi also gained 1.2%, or 48 points to trade at 4,058.Meanwhile, trading in Hong Kong remained closed today. The surge followed Wall Street’s explosive performance on Tuesday, where major indices hit fresh records and AI giant Nvidia jumped five percent, reinforcing the market’s tech-driven momentum. Analysts say that investors appear unfazed by the looming decision from the US Federal Reserve. The latest wave of buying comes just hours before the Federal Reserve is expected to reveal a quarter-percentage-point reduction in lending rates later on Wednesday. The anticipated cut has helped fueling an extended bullish wave across global exchanges. Investors are also betting on a breakthrough in trade talks between the United States and China. US President Donald Trump is due to meet Chinese President Xi Jinping in South Korea this week, raising hopes of an agreement that could prevent another disruptive trade war. Trump, who arrived in South Korea on Wednesday after stops in Malaysia and Japan, has been signalling optimism over the talks. Ahead of his arrival, he told reporters aboard Air Force One that he expects “a lot of problems are going to be solved” during his discussions with Xi. The meeting, their first face-to-face engagement since Trump returned to the White House this year, is scheduled for Thursday on the sidelines of the APEC summit in Gyeongju. The anticipation of the leaders’ meeting has been amplified by a wave of tariffs imposed by the US president, many of which have hit China particularly hard. Despite the tensions, markets continue to rally. The market frenzy is expected to continue as investors await earnings results from US tech giants such as Microsoft and Meta in the coming days, seen as the next big test for the AI-fuelled rally.
