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Asian equities climbed sharply on Thursday after upbeat earnings and optimistic forecasts from semiconductor leaders Micron Technology and Qualcomm renewed investor confidence in artificial intelligence (AI) stocks. The strong results helped ease recent concerns over stretched valuations in the AI sector, driving gains across major technology-focused markets.
Japan and South Korea led the regional rally, with Japan’s Nikkei index surging more than 2%, while South Korea’s KOSPI jumped 5.5%, reinforcing its position as the world’s best-performing stock market in 2026. Meanwhile, MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 1.3%, reflecting widespread investor optimism.
Micron boosted market sentiment after revealing that customers had already committed approximately $22 billion in purchases for its advanced memory chips. Qualcomm further strengthened confidence by forecasting that its data center business could generate $15 billion in annual revenue by 2029. The positive outlook also lifted U.S. equity futures, with S&P 500 futures gaining 0.5% and Nasdaq futures climbing 1.8%.
Market analysts welcomed the earnings but remained cautious about the sustainability of the AI-driven rally. IG market analyst Tony Sycamore noted that Micron’s results provided a much-needed boost for technology stocks, although cooling investor positioning could limit future gains. ATFX Global strategist Nick Twidale also viewed the earnings positively but warned that elevated valuations across AI-related companies may continue to pressure sentiment in the months ahead.
Outside the equity markets, oil prices extended their decline after tankers resumed movement through the Strait of Hormuz following signs of easing geopolitical tensions in the Middle East. Brent crude slipped to around $73.34 per barrel, while West Texas Intermediate traded near $70.07, reducing immediate concerns over supply disruptions.
Lower oil prices may help moderate inflation, but investors remain focused on the upcoming U.S. Personal Consumption Expenditures (PCE) inflation report. Economists expect core PCE inflation to rise 0.3% in May, reinforcing expectations that the Federal Reserve could deliver at least one additional interest rate hike this year.
The prospect of tighter U.S. monetary policy strengthened the U.S. dollar, pushing the Japanese yen close to its weakest level in four decades at around 161.73 per dollar. Currency traders are increasingly watching for potential intervention from Japanese authorities should the yen weaken further.
The stronger dollar also weighed on precious metals, with spot gold falling below the $4,000-per-ounce mark for the first time in 2026, reflecting reduced demand for safe-haven assets as investors shifted toward higher-yielding opportunities.
Overall, stronger-than-expected earnings from Micron and Qualcomm have temporarily revived confidence in global technology stocks, but analysts caution that valuation concerns, inflation data, and central bank policy will continue to shape market direction in the coming weeks.
