South Korean shares surged 4.39% on Tuesday, with the KOSPI rising 240.38 points to 5,709.85 as AI investment optimism and stronger-than-expected economic growth boosted investor sentiment. According to Reuters, the rally was led by semiconductor heavyweights, with Samsung Electronics climbing 5.05% and SK Hynix gaining 7.14%. Foreign investors were net buyers of South Korean shares worth ₹597.3 billion ($450.57 million), while market breadth remained positive with 695 stocks advancing and 187 declining among 910 traded issues. The Korean won strengthened 0.08% to 1,325.0 per dollar, reflecting positive market momentum and improving confidence in technology-driven growth prospects.
South Korea's economy expanded 1% quarter-on-quarter in the third quarter of 2026, according to preliminary estimates reported by CNBC. This reading exceeded economists' expectations of 0.7% growth and accelerated from the 0.6% expansion recorded in the previous quarter. The stronger-than-expected GDP reading was driven by exports and investment, supported by sustained global demand for semiconductors amid continued investment in artificial intelligence infrastructure. The robust growth provided a significant boost to investor sentiment, with semiconductor demand remaining a key driver of South Korea's economic and equity market outlook.
Japan's Services Producer Price Index (SPPI) rose 3.7% year-on-year in September 2026, according to CNBC reports, accelerating from a downwardly revised 3.5% increase in August and matching market expectations. The latest reading marked the highest level since June 2024, reflecting persistent labour cost pressures and elevated transportation and fuel expenses amid geopolitical tensions. The continued strength in services inflation is likely to remain a key consideration for the Bank of Japan as policymakers assess the outlook for domestic prices, wages, and interest rates.
US stocks closed higher in the previous trading session, with technology shares outperforming amid optimism surrounding Anthropic's IPO filing. As reported by CNBC, the Dow Jones Industrial Average gained 146.42 points (0.3%) while the S&P 500 advanced 0.7% and the Nasdaq Composite rose 0.8%. The technology sector's strength was supported by continued optimism surrounding artificial intelligence developments and the filing of Anthropic's IPO, which has generated significant investor interest in the AI sector. The Philadelphia Semiconductor Index advanced more than 2%, helping revive investor enthusiasm for AI-related stocks.
The Bank of Japan's upcoming monetary policy decision (October 29-30, 2026) remains a key focus for Asian markets. According to a CNBC survey, all 16 respondents expect the BOJ to hold rates steady at 1.25%, following last month's increase that took borrowing costs to their highest level in 31 years. However, the possibility of another rate hike in the coming months remains firmly on the table, with all respondents expecting the central bank to prepare ground for a potential increase in December 2026 or January 2027. Investors will closely watch the BOJ's policy statement and guidance for indications of the timing of its next move, as any shift in the central bank's assessment could influence the yen, Japanese government bond yields, and regional equity markets.
