Asian Market Surge: AI Optimism and Federal Reserve Anticipations

Asian shares experienced an upswing on Wednesday, driven by positive sentiments from Wall Street amidst a new wave of artificial intelligence-related optimism. As technology giants like Nvidia and Microsoft showcased their strength, investors braced for significant announcements from the Federal Reserve.

With the anticipation of lower U.S. interest rates, bonds found support, while the dollar dipped. Wall Street's record closing was fueled by Nvidia's $500 billion AI chip bookings and Microsoft's 27% stake acquisition in OpenAI. These moves fortified Asian market stocks, with surges noted across various indices, including Japan's Nikkei and South Korea's Kospi.

Investors remain on edge as they await the Fed's rate decision, with expectations of a 25-basis-point cut and potential cessation of quantitative tightening. Meanwhile, commodities showed varied responses, with oil prices rebounding and gold stabilizing just below the $4,000 mark.