SINGAPORE: Asian technology stocks rose on Thursday boosted by blockbuster earnings from AI chipmaker Micron, although US bonds struggled after their sharpest quarterly selloff in more than three decades as inflation risks from elevated energy prices linger.
Stalling peace talks between the US and Iran to end the seven-month-long war in the Middle East have kept crude prices aloft. Brent futures surged 42% in the July-September quarter.
The high-stakes earnings from Micron, a key supplier to AI bellwether Nvidia, signalled strong demand for AI memory chips, with financial commitments under long-term supply agreements at $32 billion, up from $22 billion in June.
That helped push tech-heavy stock markets in Asia higher. Japan's Nikkei jumped more than 3%, while South Korea's KOSPI reversed earlier losses to gain 1.7%. Taiwan's stock benchmark was 0.8% higher.
Futures for the U.S. Nasdaq advanced 0.7%, while S&P 500 futures rose 0.4%. European stock futures, however, slid 0.75%, while Asian markets with less exposure to AI stocks also declined.
"Micron's numbers are another strong validation of AI and memory demand, but markets may increasingly be asking whether we are closer to peak memory shortage, even if demand continues to exceed supply," said Charu Chanana, chief investment strategist at Saxo.
"The macro backdrop is also becoming more mixed. Softer US data has taken some pressure off Fed expectations and shorter-term yields, but long-term yields remain high, so the cost-of-capital concern has not really gone away," Chanana said.
Investors were also contemplating softer-than-expected US inflation that lowered the odds of a rate hike from the Federal Reserve later this month. -Reuters
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