GLOBAL MARKETS: Asian stocks surge as Micron earnings ease AI fears

SINGAPORE — Asian equities surged on Thursday after strong earnings and forecasts from chip giants Micron and Qualcomm eased concerns over the recent artificial intelligence-driven rally that has pushed global stocks to record highs.

Technology-heavy markets in Japan and South Korea led gains. Micron said its customers had committed $22 billion for its memory chips, while Qualcomm projected $15 billion in sales from its data center business by 2029, boosting investor confidence in the semiconductor sector.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.3% in early trading. Japan’s Nikkei climbed more than 2%, while South Korea’s KOSPI, the world’s best-performing stock market in 2026, jumped 5.5%.

In the United States, futures also pointed higher, with S&P 500 futures rising 0.5% and Nasdaq futures up 1.8%, reflecting improved sentiment toward technology stocks.

“Tech stocks received a much-needed shot in the arm after the bell when Micron delivered its earnings report,” said Tony Sycamore, market analyst at IG. He noted that recent data suggests broader cooling in positioning, which could challenge tech’s momentum in the near term.

Investor concerns over stretched valuations in artificial intelligence-related companies have weighed on markets in recent days, leading to volatile trading sessions. Analysts, however, remain cautious about the sustainability of the rally as valuation worries persist.

“It’s a positive from Micron,” said Nick Twidale, chief market strategist at ATFX Global in Sydney. “But I’m not sure how long the euphoria will last across the rest of the sector. I think valuation concerns will continue to weigh on sentiment moving forward.”

In commodities, oil prices extended declines as tanker traffic resumed movement through the Strait of Hormuz following an initial accord aimed at ending the U.S.-Israeli conflict with Iran, easing supply disruption fears.

Brent crude futures slipped 0.5% to $73.34 a barrel, while U.S. West Texas Intermediate fell 0.38% to $70.07 a barrel.

The easing in oil prices could help reduce inflationary pressure, though elevated energy costs are still expected to keep the U.S. Federal Reserve under scrutiny as investors price in at least one potential rate increase this year.

Attention now turns to Thursday’s Personal Consumption Expenditures (PCE) inflation report, which is expected to show core prices rising 0.3% in May, with annual inflation at 3.4%. Headline inflation is forecast at 0.5% for the month and 4.1% year-on-year.

Rising rate expectations have strengthened the U.S. dollar, pushing the Japanese yen to near its weakest level in four decades and raising the possibility of intervention from Tokyo. The yen last traded at 161.73 per dollar, close to its lowest since 1986.

The dollar index stood at 101.6 after touching 101.80 in the previous session, its highest level since May 2025.

A stronger dollar has weighed on gold, which slipped below $4,000 an ounce for the first time in 2026. Spot gold last traded at $3,990 per ounce, hovering near its weakest level since November. -Reporting by Ankur Banerjee in Singapore; Editing by Kate Mayberry/Reuters