South Korean chipmaker SK Hynix added to the buoyant mood with a more than seven-fold rise in quarterly operating profit. (EPA Images pic)SINGAPORE: Asia stocks rallied on Wednesday after a resurgence in AI enthusiasm ahead of earnings from industry bellwethers later in the US day, while the dollar was perky ahead of a Federal Reserve policy decision.
South Korean chipmaker SK Hynix reporting a more than seven-fold rise in quarterly operating profit added to the buoyant mood.
The AI rally faces its next test when technology giants Alphabet and Microsoft report earnings after market close, with investors looking for evidence of returns that would justify the hefty price of AI build-out.
"While we're expecting strong results across the board, the focus is less about the actual earnings results than about whether the capex spending for AI growth will translate into sustainable revenue growth for these companies, which remains a big question mark," said SWBC chief investment officer Chris Brigati.
