Asia report: Shares rally on strong US earnings

21st Oct 2026 07:33

(Sharecast News) - Asian markets rallied on Wednesday as strong US corporate earnings boosted risk appetite, with investors shrugging off recent volatility.

Sentiment was lifted by a 3.29% jump in South Korea, while Japan's Nikkei 225 gained 0.97%.

In Japan, the yen weakened slightly against the dollar after data showed September exports rose 16.7% year-on-year, missing forecasts despite continued strength in semiconductor and AI-related demand.

Investors also looked ahead to key central bank decisions. Economists expect the Bank of Japan to leave interest rates unchanged this month before resuming tightening in December, while markets are similarly pricing a high probability that the Federal Reserve will remain on hold at its next meeting.

South Korean AI company Elice, which plunged 32% on Tuesday in its first day of trading, rebounded on Wednesday, with shares hitting the upward limit of 29.9%.

Chinese stocks were lower with the Shanghai Composite down 0.6%, while Hong Kong's Hang Seng fell 0.98%.

Australian equities moved higher, with the ASX 200 gaining 0.16%, supported by gains in mining and energy stocks, although advances were tempered by caution ahead of further signals on interest rates and the outlook for commodity demand from China.

Reporting by Frank Prenesti for Sharecast.com