Global Markets Today, October 28, 2026: Asia Rises on AI Optimism, Oil Above $115 Keeps Indian Markets Cautious

Mumbai, October 28: Asian markets advanced on Wednesday, October 28, as renewed enthusiasm for artificial intelligence (AI) lifted technology stocks, although elevated crude oil prices and uncertainty surrounding the US Federal Reserve’s policy outlook could limit gains in Indian equities. Investors are also awaiting earnings from major US technology companies, including Alphabet and Microsoft, for clues on whether heavy AI investments are translating into sustainable growth. 

Asia Advances 

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.6% in early trade, while Japan’s Nikkei 225 gained 1.3% and South Korea’s KOSPI jumped 5.7%. South Korean chipmaker SK Hynix reported a more than seven-fold increase in quarterly operating profit, adding to optimism around AI-related demand. Recent funding announcements involving Meta Platforms, SpaceX and Broadcom, alongside AI startup Anthropic’s initial public offering filing, have also helped revive investor appetite for technology stocks. 

Nasdaq futures advanced 0.3%, while EURO STOXX 50 futures edged 0.8% higher ahead of key earnings announcements and the Fed’s policy decision. 

Wall Street Ends Higher Ahead of Fed Decision 

US stocks closed higher on Tuesday, supported by renewed interest in AI-linked shares as investors assessed corporate earnings and prepared for the Federal Reserve’s latest policy announcement. The technology-heavy Nasdaq led gains, with chip stocks benefiting from optimism surrounding Anthropic’s planned IPO and the broader AI investment cycle. 

The Fed is widely expected to leave interest rates unchanged at its October meeting. However, investors will closely examine policymakers’ comments for signals on the future rate trajectory, particularly as inflationary pressures persist amid the US-Iran conflict and elevated energy prices. Markets are pricing in the possibility of further rate increases in the coming months, making the central bank’s guidance a key driver of global risk sentiment. 

The US dollar remained near a two-week high, adding another consideration for emerging-market investors as currency movements and interest-rate expectations influence foreign capital flows. 

Crude Oil Above $115 Keeps Inflation Concerns Alive 

Oil prices remained elevated on Wednesday, with Brent crude futures rising 1.3% to $115.4 a barrel and US West Texas Intermediate crude gaining 1.2% to $101.1. Prices have stayed near multi-month highs amid concerns over shipping disruptions and the continuing conflict involving the US, Israel and Iran. Prospects for a diplomatic resolution have yet to translate into a sustained easing of supply concerns. 

For India, which relies heavily on imported crude, expensive oil poses risks to inflation, the rupee, corporate margins and the country’s import bill. Sustained high prices could also complicate the outlook for interest rates and weigh on sectors sensitive to fuel and input costs. 

What to Expect from Indian Markets 

The upbeat Asian cues could provide some support to domestic equities at the open on Wednesday. However, crude oil above $115 a barrel, uncertainty ahead of the Fed decision and lingering geopolitical risks are likely to keep investors selective. The overall setup points to a cautious start rather than an unambiguously strong rally, with market direction likely to depend on oil-price movements, global risk appetite and stock-specific earnings developments. 

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