Markets across Asia finished mostly higher Thursday, with technology stocks leading the charge in Japan and South Korea. The rally came after strong earnings reports from major U.S. chip companies Qualcomm and Micron Technology sent their share prices soaring in after-hours trading.
Qualcomm saw its stock jump 12% after the company announced it had raised its annual revenue forecast to $40 billion, up from $22 billion. The company also unveiled a new data center computer chip called the Dragonfly C1000 CPU, which Meta plans to adopt.
Micron Technology’s shares climbed nearly 16% after the company raised its own outlook and beat analysts’ expectations.
In Tokyo, the Nikkei 225 index surged 4.1%, closing at 71,995.59. Chipmaker Tokyo Electron gained 7.1%, while chip testing equipment manufacturer Advantest soared 13.4%. South Korea’s Kospi index hit an all-time record, jumping 5.9% to 8,968.22. Samsung Electronics rose 5.4%, and SK Hynix leaped 11.6%.
Gains were more measured elsewhere in the region. Taiwan’s Taiex edged up 0.8% and India’s Sensex rose 0.6%. China’s Shanghai Composite index added 0.4% to reach 4,125.76, while Hong Kong’s Hang Seng bucked the trend, falling 1.4% to 23,090.27. Australia’s S&P/ASX 200 slipped 0.5% to 8,768.20.
Back on Wall Street Wednesday, stocks closed with mixed results as losses among several major technology companies dragged on the market. The S&P 500 slipped 0.1% to 7,358.22, and the tech-focused Nasdaq composite fell 0.4% to 25,476.64. The Dow Jones Industrial Average, which carries less tech weight, bucked the trend and rose 10.4% to 51,848.90.
Microsoft dropped 2.3% and Oracle fell 4.6%. Analysts have cautioned that after fueling Wall Street’s record-breaking run this year, valuations for many large tech companies may have become overstretched.
Alphabet, the parent company of Google, dipped 0.2%. The company is set to replace Verizon in the Dow Jones Industrial Average on Monday. Analysts note that its presence in the S&P 500 carries more weight for everyday investors, since 401(k) retirement plans are far more likely to hold S&P 500 index funds than Dow-linked investments. Alphabet will become the fifth so-called Magnificent 7 tech company in the Dow, joining Apple, Amazon, Microsoft, and Nvidia.
Energy stocks were among the biggest losers Wednesday as oil prices fell amid ongoing negotiations between the U.S. and Iran over a possible end to their war. Exxon Mobil dropped 2% and Chevron lost 2.6%. Brent crude, the international benchmark, fell 3.8% to $73.87 per barrel. While it has been trading below $80 in recent days, it remains above the roughly $70 per barrel level seen in late February before the war began. U.S. crude fell 3.9% to $70.34 a barrel.
By early Thursday, Brent crude had fallen an additional 1.3% to $72.90, while U.S. benchmark crude dropped 1.4% to $69.37 a barrel.
Among the standout winners Wednesday were homebuilding companies, which rallied after legislation favorable to the industry was approved. KB Home surged 16.7% and D.R. Horton jumped 6.7%.
The Federal Reserve is set to receive an important inflation update Thursday when its preferred price gauge is released. Economists anticipate the Personal Consumption Expenditures index, known as PCE, will show prices rose 4.1% in May — which would mark the highest reading in three years.
The Fed remains concerned about rising inflation, which has been pushed higher by tariffs increasing the cost of many goods. The ongoing war has also driven up energy and shipping costs, and analysts expect those effects to persist even as oil and gasoline prices ease.
In currency markets Thursday morning, the U.S. dollar slipped to 161.75 Japanese yen from 161.79 yen. The euro gained ground, rising to $1.1368 from $1.1359.
