Asian stocks rise on Nasdaq lead; AUD, NZD gain

Summary:

• Equities in Japan and South Korea moved higher after the Nasdaq helped drive a stronger day on Wall Street.
• The South Korean economy expanded 1.0% quarter on quarter in Q3, comfortably exceeding expectations, while a sharp KOSPI rally brought a sidecar suspension of program trading.
• September saw Japan's services producer price index increase 3.7% from a year earlier, compared with a downwardly revised 3.5% in August, prior to the Bank of Japan's decision on Friday.
• China recorded a 14.4% year-on-year rebound in industrial profits for September, up from August's 4.2% pace.
• Both the Australian and New Zealand dollars strengthened before Wednesday's release of Australian consumer price data.
• Gold prices held steady while crude edged down a touch.

Wall Street lead Asian equity markets drew a constructive cue from the US, where Monday's session ended firmer thanks to Nasdaq-driven gains. Tech sentiment has been lifted by the prospect of Anthropic's planned stock exchange debut, shifting attention back to the AI sector after a painful correction period.

Japan Japan's share market was trading higher at midday. Figures showed the services PPI — covering what companies bill each other for services — rose 3.7% year on year in September. That result matched projections and was above August's downwardly adjusted 3.5% reading, indicating labour costs are being passed through at a faster rate. The Bank of Japan wraps up a two-day meeting on Friday and is expected to keep its policy rate at 1.25% while indicating scope for further increases. Focus centres on whether the bank's Outlook Report will state that underlying inflation has hit the 2% threshold.

South KoreaSouth Korean shares rallied sharply, spurring a sidecar halt on program trading in the KOSPI index. The economy grew 1.0% quarter on quarter in Q3, exceeding the 0.7% projection, powered by AI chip demand that lifted both exports and capital spending. The Bank of Korea reckons semiconductors make up roughly half of the expansion, even as private consumption dropped for the first time in almost four years.

China September industrial profits climbed 14.4% year on year, a rebound from August's 4.2% pace. The year-to-date figure eased a touch to 15.5% from 15.7%, leaving the underlying trajectory solid but decelerating incrementally.

Currencies The Australian and New Zealand dollars both firmed. Australia's Q3 CPI is scheduled for 00:30 GMT on Wednesday, with major banks predicting core inflation will exceed the RBA's projection, keeping a November increase on the table. Over in New Zealand, most NZIER Monetary Policy Shadow Board members backed a 25-basis-point rate rise at the RBNZ's next assessment.

Commodities Gold held steady while oil slipped a little. Energy continues to be a notable inflation concern for monetary authorities with tensions around Iran persisting.

Ahead The Fed's two-day meeting wraps up Wednesday. Many analysts anticipate the central bank will forgo a hike this time before delivering one in December. The BoJ announcement comes on Friday.