Asia opened higher alongside US equity-index futures after upbeat tech results revived the AI trade. The MSCI Asia Pacific Index added 0.9% on two-to-one positive breadth, and South Korea led with a 3% Kospi surge as SK Hynix Inc. and Samsung Electronics Co. climbed at least 5%.
AI infrastructure stayed front and center. Elice Inc. spiked 30% in Seoul, recovering from an initial listing that ranked among South Korea's most disappointing on record. By contrast, Australia's Nextdc Ltd. dropped 45%, following a reduction to its outlook by the data-center developer and a renewal of its capital expenditure program.
A strong US after-hours session set the tone. SpaceX posted net income exceeding estimates by over 100%, pushing the stock up 8% in late trading. Super Micro Computer Inc. delivered results ahead of forecasts, jumping 15% in post-market trading and lifting AI-infrastructure peers. Futures for the Nasdaq 100 advanced 1%.
Separately, Elon Musk said that SpaceX and Tesla Inc. set up dedicated committees to assess a possible merger - an initial step toward what would be the largest corporate tie-up ever. Next up on the calendar: Meta Platforms Inc. and Tesla are due to report Wednesday.
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"Clear earnings beats and constructive corporate updates are helping to ease some of the AI anxiety that has surfaced in recent sessions," said Tim Waterer, who is chief market analyst at KCM Trade. Mark Cranfield, MLive Strategist, added that the bounce in Korean and Japanese stocks could hinge on Meta's quarterly results later today.
Oil steadied after a volatile Tuesday as traders sifted conflicting headlines about attempts to halt the US Iran war. Brent crude was up 0.6% near $109.40 a barrel early Wednesday. Gold held its recent pullback, with bullion trading around $4,120 an ounce after dropping more than 1% since the week began.
Treasuries eased, with the 10-year yield up two basis points to 5.12%. The 2-year and 30-year moved similarly, and the dollar was a bit firmer against most Group-of-10 peers.
The AI story is evolving from blanket enthusiasm to a focus on balance sheets and execution. Ken Griffin said investors are "almost certainly" in the middle of an AI bubble, while Edward Jones's Angelo Kourkafas sees firm demand but a more selective market: "moving away from an environment where everything AI-related goes up toward a greater focus on quality and the companies with the deepest pockets to finance the investment needed to meet demand." Translation for positioning: near term, the sector's direction may hinge on whether Meta and Tesla's numbers can extend the earnings spark - and, by extension, how much runway AI infrastructure names have in your portfolio.
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