Asian stocks rose on Wednesday October 21, tracking gains in US equity-index futures after strong earnings from some of the biggest beneficiaries of the artificial intelligence boom revived investor appetite for technology stocks.

The MSCI Asia Pacific Index climbed 0.6%, with South Korea and Japan leading the advance. The Kospi surged 3.62% as the South Korean market rebounded from one of the country’s worst IPO debuts on record.

In Japan, the Nikkei 225 gained 1.76% and the broader Topix added 1.12%. Hang Seng futures rose 0.5%.

In India, the GIFT Nifty which indicates how the country’s stock market would open for the day, predicted a positive start for the indices in green.

The country’s market is also set to see the subscription for the initial public offering (IPO) of Jio Platforms open on Wednesday. The IPO has been dubbed as the ‘Mother of all IPOs’ by market experts as it is expected to be the largest in the country’s record so far.

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In the currency market, The Japanese yen was little changed at 158.29 per dollar, and the offshore yuan held at 6.6746 per dollar.

US stock futures pointed higher as well. Nasdaq 100 futures climbed 0.7%, and SpaceX shares jumped about 7% in extended trading after the company reported third quarter results.

Super Micro Computer also beat expectations and surged 15% in post-market trading, which lifted AI-infrastructure shares. Netflix, meanwhile, moved the other way and fell after it issued a disappointing forecast.

SpaceX drove the rally after Elon Musk’s satellite, rocket and AI conglomerate posted a net income of $4.4 billion for the quarter ended September with revenue having jumped 161% from a year earlier.

Musk separately said SpaceX and Tesla have formed special committees to explore a potential merger. The move is a preliminary step towards what would be the largest corporate tie-up of all time.

The results offered investors some reassurance after concerns over AI valuations and financing had rattled technology shares last week. Attention now seemed to turn towards a packed earnings slate, where investors would look for signs that growth can justify the billions of dollars flowing into AI infrastructure.

Oil prices, meanwhile, held on to its gains in early Asian trade after a choppy session on Tuesday, when traders weighed conflicting headlines on efforts to end the US-Iran war. Brent crude held on to its gains trading at $109.52 in early Asian trade, while the US West Texas Intermediate (WTI) gained 0.7% to $98.48 a barrel.

In bond markets, long-term US Treasuries outperformed during the New York session, which weighed on the dollar. Oil has driven US Treasury yields for much of this year, but bond investors seemed to have largely ignored crude last week as stocks tied to AI investment sold off.