BANGKOK (AP) - On Thursday, Asian shares generally climbed, driven by notable gains in technology sectors, particularly in Japan and South Korea. The surge followed positive earnings reports from major U.S. semiconductor firms like Qualcomm and Micron Technology, boosting investor confidence in the tech industry.
In the commodity market, oil prices saw a decline, dipping more than $1. These prices are now approaching levels observed prior to the onset of the conflict with Iran.
Qualcomm experienced a significant rise, with its share price surging 12% in after-hours trading. This increase followed the announcement that the company had elevated its revenue forecast from $22 billion to $40 billion for the year. Qualcomm also introduced a new data center chip, the Dragonfly C1000 CPU, which is slated to be utilized by Meta.
Similarly, Micron Technology saw its shares jump nearly 16% during after-hours trading after announcing an upgrade to its earnings forecast, which surpassed analysts’ expectations.
In Asian indexing, the Nikkei 225 in Tokyo rallied by 4.1%, ending at 71,995.59 as investors flocked to technology stocks. Notably, chip supplier Tokyo Electron reported a 7.1% increase in share value, while Advantest, a chip testing equipment manufacturer, experienced a remarkable 13.4% rise.
The South Korean benchmark, the Kospi, achieved a new record, surging 5.9% to close at 8,968.22. This increase was driven by substantial advancements in Samsung Electronics, which recorded a 5.4% gain, and SK Hynix, which soared 11.6%.
Other regions in Asia saw lesser gains. Taiwan’s Taiex climbed slightly by 0.8%, while India's Sensex rose by 0.6%. The Shanghai Composite index edged up 0.4% to 4,125.76. In contrast, Hong Kong's Hang Seng index declined by 1.4% to 23,090.27, and Australia’s S&P/ASX 200 fell by 0.5% to 8,768.20.
Meanwhile, on Wall Street, stocks closed mixed on Wednesday. Several tech giants, including Microsoft, experienced losses, weighing down the overall market. The S&P 500 fell by 0.1% to 7,358.22, while the Dow Jones Industrial Average, which is less tech-heavy, rose by 10.4% to 51,848.90. The tech-heavy Nasdaq composite saw a decline of 0.4%, closing at 25,476.64.
Among the notable losses were Microsoft, which dropped 2.3%, and Oracle, which fell by 4.6%. Despite many large tech firms propelling Wall Street’s record-setting spree throughout the year, analysts caution that their valuations might be overextended.
Alphabet, the parent company of Google, slipped by 0.2%. The company is set to replace Verizon in the Dow on the upcoming Monday. However, its inclusion in the S&P 500 is deemed more significant to investors since 401(k) accounts are more likely to include S&P 500 index funds rather than those tied to the Dow.
Alphabet's addition as the fifth member of the Magnificent 7 tech companies in the Dow follows Apple, Amazon, Microsoft, and Nvidia.
In the oil sector, numerous companies faced substantial losses as oil prices fell amid ongoing negotiations between the U.S. and Iran regarding the potential conclusion of their conflict. Exxon Mobil's share price decreased by 2%, and Chevron experienced a loss of 2.6%. Brent crude, the international benchmark, plummeted 3.8%, trading at $73.87 per barrel. Though recent trading has seen prices below $80, they remain above $70, the price level prior to the war’s commencement.
As of early Thursday, Brent crude was down 1.3% at $72.90, while U.S. benchmark crude fell by 1.4% to $69.37.
In other news, homebuilders on Wall Street experienced notable gains following the approval of legislation favoring their industry. KB Home surged by 16.7%, while D.R. Horton climbed 6.7%.
The Federal Reserve is expected to release its key inflation data later today, focusing on the Personal Consumption Expenditures price index (PCE). Economists predict a 4.1% increase in prices for May, marking the highest level in three years. The Fed has expressed concern about rising inflation, exacerbated by tariffs increasing the costs of various goods. The ongoing war has further propelled energy and shipping costs, with lingering effects expected even as oil and gasoline prices begin to decline.
In currency markets, the U.S. dollar decreased to 161.75 Japanese yen from 161.79 yen, while the euro slightly increased to $1.1368 from $1.1359.
