Asian shares are mixed, with Kospi up 3% after US stocks rally on strong
earnings
[October 21, 2026] By
ELAINE KURTENBACH
Asian shares were mixed on Wednesday, with Japan and South Korean
technology stocks advancing following a broad rally on Wall Street.
The Kospi in Seoul gained 3.3% to 5,735.66.
South Korean AI company Elice, whose 32% drop Tuesday in its first day
of trading spooked markets, rebounded on Wednesday, hitting the upward
limit of 29.9%.
Tokyo's Nikkei 225 rose 0.9% to 64,621.24 after Japan reported that its
exports jumped 16.7% in September from a year earlier, on strong sales
of autos and computer-related components. Imports surged 18.9%, largely
thanks to higher prices for oil due to the Iran war, nearly doubling
Japan's trade deficit for the same month a year earlier.
“Robust AI demand should continue to support tech-related goods exports.
However, non-AI capital goods and auto are likely to weaken amid high
energy prices and borrowing costs, weighing on overall exports,” Oxford
Economics said in a report.
Markets in Greater China were mostly lower, with Hong Kong's Hang Seng
shedding 0.7% to 23,707.11, while the Shanghai Composite index fell 0.6%
to 3,713.36. Taiwan's Taiex rose 1.3%.
In Australia, the S&P/ASX 200 picked up 0.2% to 8,831.30.
On Tuesday, most U.S. stocks rose following strong profit reports from
Equifax, Hasbro and other companies, while oil prices eased back after
nearing their highest levels since the war with Iran began.
The S&P 500 added 0.3%. The Dow Jones Industrial Average rallied 1%,
while more swings for stocks in the artificial intelligence industry
sent the Nasdaq composite to a modest loss of less than 0.1%.
Big expectations for earnings growth have allowed the U.S. stock market
to hit records recently despite worries about high inflation, higher
interest rates and other challenges weighing on Wall Street.
Equifax rallied 11.3% for one of the market’s biggest gains after
reporting a bigger profit for the summer than analysts expected, despite
high mortgage rates slowing some parts of its business.
Hasbro climbed 11.2% after the toy company said its “Magic: The
Gathering” game made more than $600 million in revenue during a quarter
for the first time. 3M rose 5.8% after the company behind Ace bandages
and Scotch-Brite sponges likewise reported a stronger-than-expected
profit, even as shoppers broadly feel discouraged by high inflation.
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A person looks at an electronic stock board showing Japan's Nikkei
index at a securities firm Tuesday, Oct. 20, 2026, in Tokyo. (AP
Photo/Eugene Hoshiko)
 Shares in Braze, a customer
engagement platform, soared 51.7% to $45.57 after Salesforce said it
would buy the company for $47.50 in cash for each share.
General Motors sank 6.8% despite reporting a bigger profit than
analysts expected. It also announced a program to send up to $20
billion to investors by buying back its stock.
The pressure is on companies to deliver bigger profits not only now,
but also in the future. GM gave a forecast range for profit over the
full year of 2026 whose midpoint fell short of analysts’
expectations.
AI stocks continued to swirl. Euphoria around the technology’s boom
has given way to worries that high interest rates in the bond market
will slow the borrowing that’s allowed companies to buy so many AI
chips. Last week was the U.S. stock market’s worst since June
because of weakness for AI-related companies.
Stocks also got a lift after the price for a barrel of Brent crude,
the international standard, erased an early gain. However, early
Wednesday, Brent jumped 1.5% to $110.40 per barrel. On Tuesday, it
rose to near $112, approaching its highest price since the war with
Iran began in late February.
Brent’s price has been yo-yoing between $97 and $112 per barrel this
month on uncertainty about when the energy industry will return to
normal.
U.S. benchmark crude rose 1.4% early Wednesday, to $99.24 per
barrel.
In other dealings, the U.S. dollar slipped to 158.11 Japanese yen
from 158.17 yen. The euro fell to $1.1226 from $1.1239.
___
AP Business Writers Stan Choe and Michelle Chapman contributed to
this report.
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