Asian stock markets rallied on Thursday (June 25th) as US stock futures rose after Micron Technology Inc.’s performance prospects rekindled investor confidence in the artificial intelligence sector. This positive sentiment pushed the Nasdaq 100 contract up 1.6%, while the S&P 500 contract rose 0.4%. In Asia, South Korea’s Kospi index surged more than 5% in early trading, while the MSCI Asia Pacific Index rose 1.1%.
This gain came after shares of Micron, the largest memory chipmaker in the United States, surged around 15% after market close. The increase was driven by the company’s quarterly sales projection, which far exceeded analyst expectations. Micron estimated revenue in the fourth fiscal quarter could reach around US$50 billion, higher than the average analyst estimate of US$43.2 billion. This signaled that demand for chips for AI needs remains strong.
Micron’s performance was a breath of fresh air for the market after global technology stocks had previously been pressured by a sell-off. Furthermore, weakening oil prices also helped ease investor concerns. Brent prices fell to near US$73 per barrel after previously plummeting more than 4%. The decline in oil prices was driven by signs of increasing supply and positive developments in peace talks between the United States and Iran.
Meanwhile, market attention remained focused on the movement of the US dollar. The dollar index briefly rose to a seven-month high after strengthening for three consecutive days. The strengthening dollar put pressure on Asian currencies, although the decline in oil prices could provide some counterbalance for energy-importing countries. The yield on the 10-year US Treasury bond also edged higher ahead of the release of PCE inflation data, the Federal Reserve’s favorite price indicator.
Meanwhile, the price of gold held steady around US$4,000 per troy ounce after previously falling below that level for the first time since November. Pressure on gold came from a strengthening US dollar and expectations of high interest rates. Market participants are now awaiting the US PCE data, as its results have the potential to influence the direction of the dollar, bonds, technology stocks, and safe-haven assets like gold. (asd)
Source: Newsmaker.id