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 helped alleviate some concerns over the red-hot AI rally that has pushed global stocks to record highs.

Tech-heavy markets ‌in Japan and South Korea rose sharply after Micron  said 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 was 1.3% higher in early trading. Japan’s Nikkei rose over 2% ​while South Korea’s KOSPI, the world’s best-performing stock market in 2026, gained 5.5%.

Futures for S&P 500 rose 0.5% while ​Nasdaq futures jumped 1.8%.

“Tech stocks received a massively needed shot in the arm after the bell ⁠when Micron delivered its earnings report,” said Tony Sycamore, market analyst at IG, noting that data was suggesting broader cooling ​in positioning that could challenge tech’s momentum in the near term.

Investor concern that valuations for AI-related companies have become stretched following years of ​gains has weighed on markets in recent days, leading to volatile sessions.

Analysts though remain sceptical of a long sustained rally in AI stocks as those valuation worries linger.

“It’s a positive from Micron,” said Nick Twidale, chief market strategist at ATFX Global in Sydney, who expects a strong move higher ​on the back of the earnings.

“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,” he said.

Tankers exit strait of Hormuz

Oil prices extended their decline as stranded ‌tankers exited ⁠the Strait of Hormuz following an initial accord to end the U.S.-Israeli war with Iran, easing supply concerns.

Brent crude futures dipped 0.5% to $73.34 a barrel, inching closer to pre-war levels. U.S. West Texas Intermediate fell 0.38% to $70.07 a barrel.

Easing oil prices may help reduce some inflation pressure but elevated prices are likely to keep the U.S. Federal Reserve under pressure to raise interest rates ​with investors pricing in at ​least one rate increase this ⁠year.

Thursday’s PCE inflation report is expected to show core prices rose 0.3% in May, putting the annual rate at 3.4%. Headline inflation is forecast at 0.5% for the month and 4.1% ​year-over-year.

Rising expectations of a rate hike have boosted the dollar, putting the Japanese yen near ​its lowest in ⁠40 years and on the brink of more intervention from Tokyo.

The yen was last at 161.73 per U.S. dollar, not far from the two-year low it hit last week. A break below 161.96 would take yen to its lowest level since 1986.

The dollar index , which ⁠measures the ​U.S. unit against a basket of currencies, was at 101.6 after reaching ​101.80 in the previous session, its highest since May 12, 2025.

The strengthening dollar has weighed on gold, which slid below $4,000 an ounce for the first time in ​2026. Spot gold last fetched $3,990 per ounce, hovering near its lowest since November.