In the Markets: Oil rises on Israel election results, tech stocks soar on SK hynix boost

Asian technology stocks rallied after strong SK Hynix earnings boosted AI optimism, while oil prices rose above $115 a barrel amid uncertainty surrounding Israel’s election and tensions with Iran.

Technology firms surged across Asia on Wednesday after blockbuster earnings from chip giant SK hynix helped boost optimism in the AI trade ahead of results from Wall Street titans Microsoft and Alphabet.

Oil prices jumped more than one percent as results from Israel's general election rolled in, with Brent crude trading at $115.61 per barrel on Wednesday morning.

While polls appeared to show Netanyahu's governing Likud and the opposition neck and neck, the prime minister vowed to form a new coalition, adding that he could work with US President Donald Trump to eliminate the "existential threat" posed by Iran.

His comments came after opposition candidate Gadi Eisenkot said the country had chosen change and that he would seek to form a new administration.

After a slight wobble this month in the tech realm caused by fresh worries about huge investment spending, profitability and company finances, AI-linked firms were back on the front foot.

SK hynix, which has been at the forefront of the chip boom, said Wednesday that third-quarter operating profit soared 632 percent to US$62.8 billion (R1.05 trillion) thanks to explosive demand for its advanced semiconductors.

The firm said it had now posted record revenue and operating profit for six straight quarters.

"While Wall Street argues over whether the AI arms race can keep financing itself, SK hynix has just reminded the market that somebody on the other side of all that capex is receiving the cheque," wrote Stephen Innes at SPI Asset Management.

The reading added to optimism surrounding the sector after Anthropic, the mother company for Claude AI, said Monday in its IPO filing that first-half revenue surged about 1,300 percent and flagged heavy capital spending ahead.

That was followed Tuesday by Broadcom's announcing jointly with Citi, Blackstone and Morgan Stanley a US$63 billion financing structure to build new capacity for Anthropic.

"The AI trade has undoubtedly received a healthy shot in the arm from Anthropic's... filing, with its incredible revenue growth, improving compute economics and substantial commitments to future infrastructure investment reinforcing the longer-term opportunity across the AI supply chain," said Pepperstone's Chris Weston.

Shares in SK hynix soared almost nine percent Wednesday and South Korean rival Samsung, which reports Thursday, added more than eight percent. That pushed Seoul's Kospi index up more than six percent.

Japan's Nikkei 225 climbed more than one percent, with chipmaker Kioxia soaring more than 10 percent, while Advantest gained three percent and Tokyo Electron four percent.

Taipei was pulled sharply higher thanks to chipmaker TSMC's strong performance, while Hong Kong, Shanghai, Sydney, Singapore and Wellington were also well up.

The gains tracked advances in New York, where the Nasdaq added more than one percent.

Microsoft and Alphabet are due to report later in the day, while Amazon, Apple and Intel follow on Thursday.

However, traders are also awaiting the Federal Reserve's policy decision Wednesday.

While it is expected to stand pat after last month's hike, its post-meeting statement and comments from boss Kevin Warsh will be pored over for clues about its future plans. Markets expect a hike in December.