Market Overview
Asian equity markets gained momentum during the APAC session, driven by a revitalised artificial intelligence (AI) trade following the IPO filing by AI startup Anthropic. This tech-driven rally, which also buoyed Wall Street in the previous session, saw chipmakers and major technology stocks advance across the region. Australia’s benchmark index also finished higher in its last session. Investors are now turning their attention to a busy week of macroeconomic events, including upcoming interest rate decisions from the US Federal Reserve, European Central Bank, and Bank of Japan, as well as crucial Australian inflation data due on Wednesday. Commodities remained in focus, with oil prices easing amid diplomatic efforts in the Middle East, while iron ore continued its decline on a weaker demand outlook.
Markets
The S&P/ASX 200, Australia’s primary equity benchmark, closed its last trading session up 0.46% at 8,850.10.
Elsewhere in the region, Japan’s Nikkei 225 was trading at 63,186.04, up 1.60% as of approximately 2:35 pm Tokyo time. South Korea’s KOSPI Composite Index jumped significantly, trading at 5,655.76, up 3.41% as of approximately 2:30 pm Seoul time.
Conversely, Hong Kong’s Hang Seng Index was trading lower at 23,062.11, down 0.64% as of approximately 1:35 pm Hong Kong time. The Shanghai Composite also dipped, trading at 3,682.88, down 0.40% as of approximately 1:35 pm Shanghai time, and Singapore’s Straits Times Index was trading at 5,402.67, down 0.24% as of approximately 1:35 pm Singapore time.
In commodities, Brent Crude was trading at 109.82, down 5.17%, while WTI Crude stood at 100.84, down 0.90%. The Australian Dollar edged lower against the greenback, trading at 0.7022, down 0.10%.
In US Treasuries, the 10-year yield for the session ending October 26, 2026, was 4.986%, down 0.20 basis points, and the 30-year yield was 5.301%, down 1.40 basis points for the same period.
What Drove Markets
The primary driver of market sentiment was a renewed enthusiasm for artificial intelligence, sparked by the IPO filing from AI startup Anthropic. The planned listing is noted as one of history’s largest potential floats and the first frontier AI lab to go public, setting the tone for broader trade across global markets. Jacki Neumann, Sharesies’ head of capital markets, characterised Anthropic’s listing as a “genuine test of investor appetite for AI,” highlighting the market’s weighing of substantial spending against future returns. Amidst the focus on the AI trade, trading volumes remained subdued as investors awaited these key developments.
This sentiment led to gains across technology sectors. The Philadelphia Semiconductor Index jumped 3% overnight, marking its biggest daily gain in over a month. Major Asian chipmakers also advanced, with South Korea’s Samsung Electronics climbing 4% and SK Hynix Inc. rising 6% on renewed AI sentiment, according to Investing.com. Japan’s SoftBank Group Corp. also jumped more than 5% as tech shares rallied, Investing.com reported. In the US, Microsoft rose 1.54%, Amazon gained 0.44%, NVIDIA climbed 2.39%, and Tesla advanced a significant 5.21%. Taiwan Semiconductor Manufacturing Company Limited (TSMC) gained 0.21%.
Global markets are also keenly awaiting monetary policy decisions from the US Federal Reserve, European Central Bank, and Bank of Japan later this week. All three central banks are widely expected to keep interest rates unchanged, shifting investor attention to policymakers’ commentary for clues on the future path of borrowing costs. Thomas Block, a Washington policy strategist at Fundstrat, suggested it would be unlikely for the Federal Reserve to move rates a week before a national election, noting that while the Fed views itself above partisan politics, such a move would be unlikely. JPMorgan’s Michele foresees US bonds returning 7-8% over the next 12 months.
In the commodity markets, oil prices extended losses from near six-month highs, driven by diplomatic efforts aimed at de-escalating Middle East tensions. However, concerns about supply disruptions persist following attacks on Saudi energy infrastructure. Persistently high energy prices could also fuel inflation and complicate the outlook for central banks. In contrast, iron ore declined to a two-year low, amidst a weaker demand outlook and rising supply expected through the rest of 2026. Benchmark futures for iron ore were down as much as 1.4% to $US89.25 a metric ton. The price of copper steadied overnight in London at around $US14,327.50 a metric ton.
Economically, South Korea’s economy grew 1.0% quarter-on-quarter in the third quarter, accelerating from 0.6% in the previous quarter and exceeding economists’ expectations of 0.7%.
In other corporate news, EnergyAustralia has cut 150 jobs “to date,” while Chevron is set to supply gas to South32’s Worsley Alumina. VanEck continues to back quality investing strategies amid a softer economic backdrop.
Stocks to Watch
On Australia’s ASX, BHP Group Limited climbed 4.26% and Rio Tinto Group rose 2.53%, leading a rally in the mining sector. Conversely, National Australia Bank Limited dropped 1.73%.
Taiwan Semiconductor Manufacturing Company Limited (TSMC) saw a gain of 0.21% amidst a broader rally in chipmakers. South Korean tech heavyweights Samsung Electronics and SK Hynix Inc. were reported to have climbed 4% and 6% respectively on renewed AI sentiment. Japanese conglomerate SoftBank Group Corp. jumped more than 5% as tech shares rallied.
In the US, major tech and growth names like Microsoft (+1.54%), Amazon (+0.44%), NVIDIA (+2.39%), and Tesla (+5.21%) all advanced in the prior session, spurred by the AI narrative. Anthropic, the AI startup whose IPO filing served as a key catalyst, will remain a focal point. Chevron (-0.51%) is also in focus due to its gas supply agreement with South32’s Worsley Alumina.