BANGKOK (AP) World shares closed mostly higher on Thursday, spurred by significant tech-driven gains in Japan and South Korea. This uptick followed impressive earnings reports from major U.S. computer chipmakers such as Qualcomm and Micron Technology, whose stock prices surged after announcing better-than-expected financial results.
In the commodities market, oil prices experienced a decline, edging closer to pre-war levels amid negotiations between the U.S. and Iran. Following Qualcomm's announcement of a revised revenue forecast of $40 billion, significantly up from the previous $22 billion, its stock rose nearly 7% in after-hours trading. Additionally, the company unveiled a new data center chip named Dragonfly C1000 CPU, which will reportedly be utilized by Meta.
Likewise, shares of Micron Technology skyrocketed 18.5% in after-hours trading, as the company not only upgraded its forecasts but also surpassed analysts' expectations. The futures for the S&P 500 gained 0.8%, while the Dow Jones Industrial Average saw a marginal increase of 0.1%. In Europe, Germany's DAX rose 0.5% to 24,859.99 points, and the CAC 40 in Paris was up 0.2% to 8,398.21. Britain's FTSE 100 also added 0.1% to reach 10,473.69.
In Asian trading, Tokyo's Nikkei 225 index surged 4.6% to a record close of 72,366.34, with technology stocks witnessing heavy buying. Notably, Tokyo Electron's shares increased by 7.8%, while Advantest, a chip-testing equipment maker, saw its shares soar by 15%. South Korea's benchmark Kospi hit a new record, advancing 5.4% to 8,930.30 after briefly surpassing the 9,000 mark, driven by gains of 5.3% in Samsung Electronics and a remarkable 13% leap in SK Hynix's stock.
Meanwhile, other Asian markets exhibited modest gains; Taiwan's Taiex rose 0.5%, and India's Sensex increased by 0.7%. Conversely, the Shanghai Composite index inched up by 0.2% to 4,120.28, while Hong Kong's Hang Seng dropped 1.4% to 23,090.27. Australia's S&P/ASX 200 index fell by 0.7% to 8,748.70.
On Wall Street, stocks had a mixed outcome, with several tech giants, including Microsoft, facing losses. The S&P 500 dipped 0.1%, while the Dow Jones Industrial Average, which is less influenced by tech stocks, saw an increase of 10.4%. The tech-heavy Nasdaq composite fell by 0.4%, with Microsoft experiencing a 2.3% loss and Oracle closing down by 4.6%. Many analysts have warned that stock valuations of large tech companies may be stretched after their significant contributions to the market's record-setting performance throughout the year.
Alphabet, Google's parent company, experienced a slight decline of 0.2%. The company is set to replace Verizon in the Dow, although its impending inclusion in the S&P 500 is viewed as more impactful by investors due to the prevalence of S&P 500 index funds in 401(k) accounts. Alphabet will join other notable tech companies such as Apple, Amazon, Microsoft, and Nvidia in the index.
In the oil sector, the sharp price declines had significant effects. Major oil companies suffered notable losses as negotiations between the U.S. and Iran progressed towards a potential resolution of their ongoing conflict. Exxon Mobil's shares dipped by 2%, while Chevron fell by 2.6%. Brent crude, the international standard for oil prices, decreased by 3.8% to $73.87 per barrel, having consistently traded below $80 recently, but remaining above approximately $70 per barrel from late February before the onset of the war. U.S. crude prices also dropped by 3.9% to $70.34 per barrel.
As Thursday progressed, early trading saw Brent crude decline by 0.8% to $73.32 per barrel, while U.S. benchmark crude fell by 0.5% to $69.88 per barrel. Furthermore, some homebuilding stocks thrived following the approval of new legislation favoring the industry, with KB Home shares surging 16.7% and D.R. Horton gaining 6.7%.
Economists were anticipating an update on inflation as the Federal Reserve was set to release its preferred price index measure later in the day. Analysts projected that the Personal Consumption Expenditures price index (PCE) would indicate a 4.1% rise in May, marking the highest increase in three years. Despite recent price adjustments, inflation concerns persist, particularly due to increased costs from tariffs and the ongoing effects of the war on energy and shipping prices.
In currency exchanges, the U.S. dollar strengthened against the Japanese yen, climbing to 161.81 from 161.79 yen. The euro also saw a rise, going up to $1.1362 from $1.1359.
