Asian and Global Markets Rise Ahead of Federal Reserve Meeting as Tech Earnings Season Approaches

Investor sentiment turned decidedly positive across Asian and Western markets, with equities climbing on optimism surrounding the upcoming fed meeting and major technology company earnings reports expected later this week. Despite lingering concerns about geopolitical tensions and U.S. government spending disputes, market participants focused their attention on the Federal Reserve’s imminent interest rate decision and the financial outlook from leading tech firms.

The broader backdrop included a striking move in precious metals, with spot gold reaching above $5,100 per ounce for the first time. Concurrently, the U.S. dollar weakened as market participants reassessed the implications of Trump administration policies, increased geopolitical risks, and potential shifts affecting European-held U.S. financial assets. Energy markets moved in the opposite direction, with crude oil prices sliding lower amid concerns about oversupply conditions.

Asian Equities Post Solid Gains as Economic Data Improves

China’s equity markets showed measured strength, with the Shanghai Composite Index gaining 0.2 percent to close at 4,139.90 following encouraging corporate earnings data. Chinese industrial firms reported profits rising for the first time in four years, signaling economic resilience. Hong Kong’s market demonstrated stronger momentum, as the Hang Seng Index surged 1.4 percent to 27,126.95, extending impressive gains into a fifth consecutive session. The rally reflected strengthening earnings trends among Chinese industrial enterprises and renewed investor confidence ahead of the fed meeting.

Japan’s equity markets experienced notable appreciation, with the benchmark Nikkei 225 Index climbing 0.9 percent to 53,333.54. Semiconductor and technology stocks led the advance, including Advantest, which skyrocketed 5.9 percent, and Tokyo Electron, rallying 2.5 percent. The broader Topix Index settled 0.3 percent higher at 3,563.59. Japanese currency movements proved significant, as the yen stabilized following recent sharp appreciation amid speculation that U.S. and Japanese authorities might coordinate currency intervention efforts.

Regional Performance Diverges but Sentiment Remains Constructive

South Korean equities delivered standout performance, with the Kospi climbing 2.7 percent to reach 5,084.85 despite U.S. President Trump’s announcement to increase tariffs on Korean goods from 15 to 25 percent. The tariff decision targeted what Trump characterized as Seoul’s failure to enforce trade agreement commitments made with Washington. Semiconductor stocks dominated the Seoul rally, with Samsung Electronics and SK Hynix both reaching record levels, advancing 4.9 percent and 8.7 percent respectively. South Korea’s presidential office responded by affirming commitment to the bilateral trade deal and pledging measured response to the tariff escalation.

Australian markets hit their highest levels in three months, driven by broad-based strength particularly in mining and precious metals stocks. The S&P/ASX 200 Index climbed 0.9 percent to 8,941.60, while the All Ordinaries Index advanced 0.9 percent to 9,268.50. Across the Tasman Sea, New Zealand’s S&P/NZX-50 Index rose 0.4 percent to 13,510.88.

U.S. Markets Advance as Investors Brace for Fed Meeting Week

U.S. stock markets closed with solid gains despite political gridlock surrounding Department of Homeland Security funding and fallout from a fatal immigration enforcement incident in Minneapolis. The Dow Jones Industrial Average climbed 0.6 percent as investors positioned ahead of the fed meeting expected later in the week and major technology earnings announcements.

Consumer demand metrics provided additional support, with U.S. durable goods orders expanding in November at their strongest pace in six months, indicating underlying economic resilience. The S&P 500 Index added 0.5 percent while the Nasdaq Composite, dominated by technology stocks, gained 0.4 percent—marking its fourth consecutive session of advances and the longest winning streak since early 2026. The convergence of improving economic data, expectations for the fed meeting outcome, and upcoming big tech earnings created a supportive environment for equity valuations globally.