Asian stocks rally as Micron, Qualcomm ease AI market concerns

SINGAPORE: Asian equities rose sharply on Thursday after strong earnings and forecasts from Micron and Qualcomm helped ease concerns over the artificial intelligence rally that has driven global stocks to record highs.

Technology-heavy markets led the gains. Japan’s Nikkei rose more than 2%, while South Korea’s KOSPI, the world’s best-performing stock market in 2026, gained 5.5%.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.3% in early trading.

US futures also moved higher, with S&P 500 futures gaining 0.5% and Nasdaq futures rising 1.8%.

The rally followed Micron’s announcement that customers had committed $22 billion for its memory chips. Qualcomm also said it expects $15 billion in sales from its data centre business by 2029.

IG market analyst Tony Sycamore said Micron’s earnings had given technology stocks support after recent pressure, though positioning data suggested the sector’s momentum could still face challenges.

AI-related stocks have seen volatile trading in recent sessions as investors questioned whether valuations had become stretched after years of gains.

Nick Twidale, chief market strategist at ATFX Global in Sydney, said Micron’s results were positive and likely to support a strong near-term move, but added that valuation concerns may continue to weigh on broader sentiment.

Oil prices also fell as stranded tankers exited the Strait of Hormuz following an initial accord to end the US-Israeli war with Iran, easing supply concerns.

Brent crude futures declined 0.5% to $73.34 a barrel, moving closer to pre-war levels. US West Texas Intermediate crude fell 0.38% to $70.07 a barrel.

Lower oil prices could ease some inflation pressure, but investors still expect the US Federal Reserve to remain under pressure to raise interest rates this year.

Markets are pricing in at least one US rate increase in 2026.

Investors are awaiting Thursday’s US Personal Consumption Expenditures inflation report. Core prices are expected to rise 0.3% in May, taking the annual rate to 3.4%. Headline inflation is forecast at 0.5% for the month and 4.1% year-on-year.

Rising rate-hike expectations have supported the dollar and kept pressure on other currencies.

The Japanese yen was last at 161.73 per US dollar, close to last week’s two-year low. A move past 161.96 per dollar would take the yen to its weakest level since 1986, raising the risk of intervention by Tokyo.

The dollar index, which measures the US currency against a basket of peers, stood at 101.6 after reaching 101.80 in the previous session, its highest level since May 12, 2025.

Dollar strength also weighed on gold, which slipped below $4,000 an ounce for the first time in 2026. Spot gold was last at $3,990 per ounce, near its lowest level since November.