SINGAPORE: Asian equities rose sharply on Thursday after strong earnings and forecasts from Micron and Qualcomm revived confidence in the artificial intelligence trade, which has helped drive global stocks to record highs.
MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1.6 per cent. Japan’s Nikkei rose more than 4 per cent, South Korea’s KOSPI jumped 5.5 per cent and Taiwan shares gained 0.9 per cent, Reuters reported. US stock futures also advanced, with S&P 500 futures up 0.5 per cent and Nasdaq futures rising 1.8 per cent, while European futures were broadly flat.
Sentiment improved after Micron said customers had committed $22 billion for its memory chips, while Qualcomm forecast $15 billion in data centre sales by 2029. The updates eased some of the pressure on technology stocks after recent volatility triggered by concerns that the AI rally had become overextended.
South Korea’s market remained one of the strongest performers, supported by gains in chipmakers SK Hynix and Samsung Electronics. SK Hynix also announced plans to raise up to $29.52 billion through a secondary listing on Nasdaq, Reuters reported. The KOSPI has more than doubled this year, making it the world’s best-performing major stock market.
Oil prices extended their decline as tankers moved through the Strait of Hormuz, easing concerns over Middle East supply disruption. Brent crude fell 1.6 per cent to $72.53 a barrel, while US West Texas Intermediate dropped more than 1 per cent to $69.36.
Lower oil prices helped reduce some inflation concerns, but investors remained cautious over the outlook for US interest rates. Markets are pricing in at least one US rate increase this year, with attention turning to the Federal Reserve’s preferred inflation measure. Reuters said the US personal consumption expenditures report was expected to show core prices rising 0.3 per cent in May, with the annual rate at 3.4 per cent.
The dollar held firm as rate expectations increased. The dollar index stood at 101.6 after touching 101.80 in the previous session, its highest level since May 2025. The yen remained under pressure near 161.73 per dollar, close to levels that could raise the risk of intervention by Japanese authorities.
A stronger dollar also weighed on gold, which slipped below $4,000 an ounce for the first time this year. Spot gold was last around $3,990 an ounce, near its lowest level since November. ـــReuters
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