Asian stocks rise as Micron’s $22B AI memory orders boost chips

Asian stocks climbed on Thursday after Micron reported customers had committed $22 billion for memory chips used in artificial intelligence, triggering gains in semiconductor shares and lifting regional markets. MSCI’s index of Asia-Pacific shares outside Japan rose about 1.3% in early trade. Japan’s Nikkei advanced more than 2% and South Korea’s KOSPI climbed 5.5%.

Micron’s update indicated continued demand for AI-related memory. Qualcomm also set a target of up to $15 billion in data-centre sales by 2029, reflecting broader corporate spending on AI hardware beyond a narrow group of suppliers.

Traders and investors described the company updates as a reset after recent heavy selling in technology names, and flows returned to equity markets where technology makes up a large share of market capitalisation in Tokyo and Seoul.

Energy prices fell, with Brent crude near $73.34 a barrel and West Texas Intermediate around $70.07, after tankers that had been stranded began leaving the Strait of Hormuz. The resumption of traffic reduced the risk premium that had been built into oil prices during the US-Israel conflict with Iran. Market participants cautioned that shipping flows are not yet fully normal and the situation remains fragile.

Currency and inflation signals were also in focus. The yen traded around 161.73 per dollar; a move above 161.96 would reach its weakest level since 1986. A stronger dollar and expectations of persistent US interest rates pushed gold below $4,000 an ounce for the first time this year. Investors are awaiting the US personal consumption expenditures report, with forecasts for a 0.3% rise in core prices for May, an annual core rate near 3.4%, and headline inflation around 4.1% year-on-year.

Analysts warned one cycle of strong results may not resolve concerns about high valuations, the use of debt to finance AI infrastructure and the long-term returns on those investments. They said upcoming earnings and corporate spending plans will be watched for further evidence of sustained demand.