Asian Stocks Rise on AI Optimism as Dollar Holds Firm Ahead of Fed Decision

Asia-Pacific equities rallied Wednesday as renewed AI enthusiasm lifted chipmakers, while the dollar held near a two-week high before the Federal Reserve's policy decision later in the day. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.85% in early trade, Japan's Nikkei gained 1.2% and South Korea's KOSPI jumped more than 3%. SK Hynix, which reported a more than seven-fold rise in quarterly operating profit, climbed 3% at the open before paring gains to trade 1.75% higher. Investors awaited earnings from Alphabet and Microsoft after the U.S. close, watching whether AI capital spending translates into sustainable revenue. The dollar index held at 102.37. The kiwi fell more than 1% after the Reserve Bank of New Zealand left rates unchanged, and the Australian dollar rose 0.25% to $0.7043 on hot inflation data. Brent crude rose 0.47% to $114.42 a barrel.