Asian stock markets experienced significant gains on Thursday, buoyed by robust earnings reports and optimistic projections from major semiconductor companies Micron and Qualcomm. This positive news has helped to ease some of the apprehension surrounding the surging artificial intelligence (AI) sector, which has propelled global stock indices to unprecedented levels.
In particular, technology-driven markets in Japan and South Korea saw substantial increases. Micron announced that its clients have pledged $22 billion towards its memory chip products, while Qualcomm is forecasting $15 billion in revenue from its data center operations by 2029.
The MSCI index tracking Asia-Pacific shares, excluding Japan, rose by 1.6%. Japan’s Nikkei index climbed more than 4%, while South Korea’s KOSPI index gained 5.5%. Additionally, Taiwanese stocks saw an uptick of 0.9%.
Futures for the S&P 500 increased by 0.5%, with Nasdaq futures soaring by 1.8%. However, European futures remained largely unchanged.
Matt Simpson, a senior market analyst at StoneX, commented, “It doesn’t take much to restore confidence among stock traders, especially with major themes like AI driving the market.” He added, “As long as the global economy remains stable, traders will seize any opportunity to buy during dips, with Micron serving as this week’s catalyst.”
Despite the positive outlook from Micron, there are ongoing concerns regarding the inflated valuations of AI-related firms, which have led to market volatility in recent days. Analysts express caution about the sustainability of a long-term rally in AI stocks due to these valuation issues.
Nick Twidale, chief market strategist at ATFX Global in Sydney, acknowledged Micron’s positive performance but expressed uncertainty about the lasting impact across the sector. “I believe valuation concerns will continue to influence market sentiment,” he stated.
Further boosting market sentiment was SK Hynix’s announcement on Wednesday regarding its plans to raise up to $29.52 billion through a secondary listing on Nasdaq, aiming to capitalize on the continued interest in AI stocks.
Shares of both SK Hynix and Samsung Electronics have contributed to the KOSPI reaching record highs throughout the year, with the index’s year-to-date gains now at 112%, making it the top-performing stock market globally.
In the oil market, prices continued to decline as tankers stranded in the Strait of Hormuz resumed operations following a preliminary agreement to conclude the U.S.-Israeli conflict with Iran, alleviating supply concerns.
Brent crude futures fell by 1.6% to $72.53 per barrel, effectively reversing all gains made during the conflict. Meanwhile, U.S. West Texas Intermediate prices dropped over 1% to $69.36 per barrel.
Falling oil prices may help to ease inflationary pressures, but sustained high prices could maintain pressure on the U.S. Federal Reserve to consider interest rate hikes, with investors anticipating at least one increase this year.
Thursday’s Personal Consumption Expenditures (PCE) inflation report is expected to reveal a 0.3% rise in core prices for May, resulting in an annual rate of 3.4%. Headline inflation is projected to be 0.5% for the month and 4.1% year-over-year.
Rising expectations for an interest rate hike have strengthened the U.S. dollar, pushing the Japanese yen to near its lowest levels in 40 years and prompting concerns of further intervention by Tokyo after a previous attempt in May failed to stabilize the currency.
The yen was last recorded at 161.73 per U.S. dollar, close to the two-year low reached last week. A drop below 161.96 would mark the yen’s lowest value since 1986.
Vincent Chung, a fixed-income portfolio manager at T Rowe Price in Hong Kong, remarked that unilateral intervention by Japan is unlikely to be effective. “Historically, coordinated actions with other central banks yield better results; thus, a broader strategy beyond mere rate adjustments could lead to a more substantial impact,” he noted.
The dollar index, which assesses the U.S. currency against a range of other currencies, stood at 101.6 after reaching 101.80, its highest since May 12, 2025.
The strengthening dollar has negatively impacted gold prices, which fell below $4,000 per ounce for the first time in 2026. Spot gold was last trading at $3,990 per ounce, hovering near its lowest level since November.
