Asian stocks surged on Tuesday as AI bellwether Anthropic's eagerly anticipated IPO filing lifted risk appetite ahead of tech earnings that will be a test for the AI trade, and central bank meetings that will influence near-term interest rates.

In Hong Kong, the benchmark Hang Seng Index opened up 48 points, or 0.21 percent, at 23,260.

The China enterprises index was 14 points, or 0.18 percent, higher at 7,816 while the tech index rose 28 points, or 0.74 percent, to 3,886.

Across the border, the benchmark Shanghai Composite Index opened up 0.02 percent at 3,698.

The Shenzhen Component Index opened almost 57 points, or 0.49 percent, higher at 11,591 while the ChiNext Index was up 0.89 percent, to open at 2,661.

The gains in Hong Kong and the mainland came as US Claude-owner Anthropic disclosed a steep loss and red-hot revenue growth in its filing for a US initial public offering, as investors increasingly dissect the potential payoff from massive AI spending and its profitability.

Also boosting sentiment was Meta Platforms' plans to raise up to US$95 billion in its largest-ever equity fundraising.

The currency markets are muted ahead of policy decisions from the US Federal Reserve, European Central Bank and Bank of Japan, with economists expecting all three to stand pat on interest rates, leaving the focus on comments from policymakers to gauge the rates outlook.

In Tokyo, the Nikkei opened 379 points, or 0.61 percent, up at 62,569 before the gains piled on to send the 225 benchmark 1,168 points higher at one stage before noon as Anthropic's IPO filing and gains in the US semiconductor index lifted local AI-related stocks.

In Seoul, the Kospi surged 189 points, or 3.46 percent, up to open at 5,658 and was 226 points higher at one stage before lunch, taking the lead from US artificial intelligence gains and strong local economic growth data.

More than a third of US S&P 500 companies are scheduled to report earnings this week, including hyperscalers Alphabet, Microsoft and Amazon.com.

"Given the increased AI scrutiny of late and circular arrangements, investors will want evidence that demand is broadening beyond these interconnected relationships to support the continued infrastructure expansion," said Anthony Saglimbene, Ameriprise's chief market strategist.

"Investors need confidence that aggressive capex spending reflects durable business needs and that profitability will hold up as new infrastructure comes into service," he said.

Fed policymakers have telegraphed they will not raise short-term borrowing costs again this week, but with inflation concerns still front and centre, investors believe a rate-hike pause will not last for long. Traders are pricing in a hike from the Fed in December.

"Can we expect [US] growth to hold up in an environment of higher rates? We think yes. We believe the US economy is going to be able to manage through higher interest rates," said Geng Ngarmboonanant, head of macro and policy, multi-asset solutions, JP Morgan Asset Management. (Reuters/Xinhua)


Edited by Tony Sabine