Global Equities Surge Ahead of Fed Meeting as Investors Eye Tech Earnings

Asian and U.S. markets moved significantly higher this week, with investors looking past geopolitical tensions and domestic political concerns to focus on two major catalysts: the upcoming Federal Reserve interest rate decision and a wave of major tech earnings reports. The rally reflected a shift in market psychology, with traders reassessing policy risks and shifting their attention to corporate performance data expected in the coming days.

Asian Markets Rise on Economic Recovery Signals

Momentum in Asia was particularly strong, as China’s Shanghai Composite Index climbed 0.2 percent to 4,139.90 following data indicating that profits at Chinese industrial firms expanded in 2025 for the first time in four years. This positive earnings momentum reverberated across the region. Hong Kong’s Hang Seng Index jumped 1.4 percent to 27,126.95, extending a winning streak to five consecutive days as investors grew more confident about Chinese company earnings trajectories.

Japan’s equity markets also captured investor interest, with the Nikkei 225 Index advancing 0.9 percent to 53,333.54. The gains were led by heavyweight technology companies, while the broader Topix Index rose 0.3 percent to 3,563.59. Notable performers included Advantest, which surged 5.9 percent, and Tokyo Electron, which climbed 2.5 percent as semiconductor demand outlook improved.

Fed Interest Rate Decision Drives Market Sentiment

The upcoming Federal Reserve meeting looms as a critical event for global markets. Investors have been positioning ahead of the rate decision, with expectations about monetary policy direction influencing their trading strategies. The anticipation of this meeting has created a supportive backdrop for risk assets, particularly technology stocks that are sensitive to interest rate movements.

Seoul’s equity market demonstrated resilience despite trade policy headwinds, with the Kospi surging 2.7 percent to 5,084.85. Semiconductor names led the advance, as Samsung Electronics and SK Hynix jumped 4.9 percent and 8.7 percent respectively, reaching new record highs. This strength came despite Trump administration announcements regarding tariff increases on South Korean goods, from 15 percent to 25 percent, related to trade agreement implementation disputes. Seoul’s government responded by reaffirming its commitment to the bilateral trade agreement.

Technology Stocks Lead Regional Rallies

Across the Asia-Pacific region, technology-focused equities outperformed, driven partly by expectations that the Fed meeting outcome could be favorable for growth-oriented sectors. Australia’s benchmark S&P/ASX 200 Index jumped 0.9 percent to 8,941.60, while the broader All Ordinaries Index rose 0.9 percent to 9,268.50, with mining and gold stocks providing broad-based support. New Zealand’s S&P/NZX-50 Index rose 0.4 percent to 13,510.88, extending the region’s rally momentum.

Precious Metals Hit Records While Dollar Weakens

Spot gold touched unprecedented levels above $5,100 per ounce as investors reassessed geopolitical risks and the outlook for U.S. financial assets held globally. The strength in gold prices was accompanied by weakness in the U.S. dollar, which declined as market participants absorbed shifting policy expectations and international tensions. Crude oil prices, by contrast, moved lower in Asian trading sessions on oversupply concerns weighing on energy demand expectations.

U.S. Markets Close Higher Despite Political Uncertainty

U.S. stock markets closed with solid gains despite ongoing fiscal negotiations. The Dow Jones Industrial Average climbed 0.6 percent, while the S&P 500 added 0.5 percent. The tech-heavy Nasdaq Composite, which has become increasingly sensitive to Fed meeting expectations, gained 0.4 percent to notch its fourth consecutive day of gains—the longest winning streak since the start of 2026.

Positive U.S. economic data provided additional support, with orders for durable goods increasing in November by the most in six months, suggesting resilience in manufacturing activity and business investment. This economic backdrop, combined with the upcoming Fed meeting and tech earnings season, appears to be motivating equity allocations across global markets.