Key facts
- Asian equities surged on Thursday, driven by strong earnings from chipmakers Micron and Qualcomm.
- Micron reported $22 billion in customer commitments for memory chips.
- Qualcomm forecasts $15 billion in data centre business sales by 2029.
- Japan's Nikkei 225 rose over 2%, and South Korea's KOSPI gained 5.5%.
- Oil prices declined as supply concerns eased following tanker movements in the Strait of Hormuz.
Asian equities surged on Thursday, with tech-heavy markets in Japan and South Korea experiencing significant gains, as strong earnings and forecasts from chipmakers Micron and Qualcomm helped alleviate concerns over the red-hot AI rally. Micron reported that its customers had committed $22 billion for its memory chips, while Qualcomm anticipates $15 billion in sales from its data centre business by 2029. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.3% in early trading, with Japan's Nikkei up over 2% and South Korea's KOSPI gaining 5.5%. Futures for the S&P 500 rose 0.5% and Nasdaq futures jumped 1.8%.
Investor concerns about stretched valuations for AI-related companies had previously led to volatile sessions. Analysts remain somewhat skeptical about the longevity of the AI stock rally due to these valuation worries. Meanwhile, oil prices extended their decline as tankers exited the Strait of Hormuz, easing supply concerns. Brent crude futures dipped 0.5% to $73.34 a barrel, and U.S. West Texas Intermediate fell 0.38% to $70.07 a barrel. Easing oil prices could help reduce inflation pressure, but elevated prices are expected to keep the U.S. Federal Reserve under pressure to raise interest rates. The dollar index was at 101.6, and the yen was trading near its lowest in 40 years at 161.73 per U.S. dollar. Gold slid below $4,000 an ounce.