In the Markets: Oil rises on Israel election results, tech stocks soar on SK hynix boost
Asian technology stocks rallied on strong SK Hynix earnings, boosting AI optimism, while oil prices climbed above $115 a barrel as Israel's election results fuelled uncertainty over tensions with Iran.
Technology stocks experienced a significant boost on Wednesday following strong earnings from chipmaker SK hynix, while oil prices surged more than one percent due to the results of Israel's general election. Brent crude traded at $115.61 per barrel in early trading. Despite polls showing Netanyahu's Likud and the opposition party neck and neck, Prime Minister Netanyahu vowed to form a new coalition and work with US President Donald Trump to address the "existential threat" posed by Iran.
The AI sector also saw a positive reaction, with tech giants Microsoft and Alphabet set to report results later in the day. SK hynix, a leader in the chip boom, reported a staggering 632% increase in third-quarter operating profit to $62.8 billion, marking six consecutive quarters of record revenue and operating profit. Analyst Stephen Innes at SPI Asset Management noted that SK hynix has demonstrated that the companies receiving capital expenditures benefits from the AI arms race are the ones generating profits.
The AI trade has received a significant boost from Anthropic's impressive revenue growth, with the company's IPO filing revealing a staggering 1,300% increase in first-half revenue. Broadcom announced a $63 billion financing structure to build new capacity for Anthropic, further reinforcing the longer-term opportunity in the AI supply chain.
As a result, SK hynix shares surged nearly nine percent, and South Korean rival Samsung added over eight percent. This pushed Seoul's Kospi index up more than six percent, while Japan's Nikkei 225 climbed more than one percent, driven by chipmaker Kioxia.
Other Asian markets also experienced gains, with TSMC's strong performance contributing to Taipei's sharp increase. The rally in technology stocks mirrored advances in New York, where the Nasdaq added more than one percent. The market is eagerly awaiting Microsoft, Alphabet, Amazon, Apple, and Intel's results later in the day, as well as the Federal Reserve's policy decision, which is expected to stand pat after last month's hike but may have implications for future plans.
Written by urgent.news from IOL's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
