South Korea’s Kospi index surged 5% in early trade, while the broader MSCI Asia Pacific Index was up over 1%. Contracts for the Nasdaq 100 were up almost 2% while those for the S&P 500 rose 0.5%
Micron, the largest US maker of computer memory chips, soared about 15% after the market close as its quarterly sales forecast crushed Wall Street estimates, signaling that an AI-fueled growth run remains strong.
The closely watched results, coupled with a slide in oil prices, bring relief to equity traders in Asia after a two-day decline that dragged the regional benchmark to its lowest in about two weeks. Brent crude extended losses after tumbling more than 4% in the last session to close below $74 a barrel on signs of swelling supply and progress on a US-Iran peace deal.
Focus is also on the dollar, with a broad gauge of the greenback having risen to a seven-month high on Wednesday after three straight days of gains, creating headwinds for Asian currencies just as a decline in oil prices toward pre-war levels offers some reprieve. Meanwhile, easing inflation concerns ahead of the release of the Federal Reserve’s preferred price gauge fueled a rally in Treasuries during the US session.
Micron’s results have arrived at a pivotal moment for the AI trade, with chipmakers and other technology stocks under pressure earlier this week. Along with South Korea’s Samsung Electronics Co. and SK Hynix Inc., Micron has been a major beneficiary of the data-center spending boom. Demand for conventional memory chips and high-bandwidth memory, a key component in AI systems, continues to outstrip supply.
Further reinforcing optimism around the sector, SK Hynix announced plans for a US stock listing. The company is seeking about $29 billion in the offering as it looks to capitalize on surging demand for advanced memory products. SK Hynix’s shares surged as high as 11% in early Asian trading.
Meanwhile, Wednesday’s rally in Treasuries saw the 10-year yield plunge 11 basis points, while the 30-year touched 4.85%, the lowest since April 8. The two-year yield, which is more closely tied to Fed policy expectations, slipped to about 4.15%.
The moves signaled another reassessment of the Fed’s likely interest-rate path, a week after traders piled into bets it may hike as soon as next month following Chairman Kevin Warsh’s first meeting leading the bank. Forecasters expect Thursday’s personal consumption expenditures price index to show acceleration on both a monthly and year-over-year basis in May.
With inputs from Bloomberg
