Asian Markets Climb on AI Optimism: What Investors and Entrepreneurs Need to Know for Business Growth
SINGAPORE: Asian equities surged on Thursday following robust earnings and optimistic forecasts from Micron and Qualcomm, which revived confidence in the artificial intelligence sector and supported global stock markets reaching record highs.
The MSCI Asia-Pacific index, excluding Japan, rose by 1.6 percent. Japan’s Nikkei climbed over 4 percent, South Korea’s KOSPI surged 5.5 percent, and Taiwan stocks increased by 0.9 percent, according to Reuters. US futures also advanced, with S&P 500 futures up 0.5 percent and Nasdaq futures rising 1.8 percent, while European futures remained mostly flat.
Market sentiment improved after Micron revealed that customers had committed $22 billion for its memory chips, and Qualcomm projected $15 billion in data center sales by 2029. These updates alleviated some of the pressure on technology stocks following recent volatility driven by concerns that the AI rally might have been overextended.
South Korea’s market stood out as one of the best performers, bolstered by gains in chipmakers SK Hynix and Samsung Electronics. SK Hynix also announced plans to raise up to $29.52 billion through a secondary listing on Nasdaq, Reuters reported. The KOSPI has more than doubled this year, making it the top-performing major stock market globally.
Oil prices continued their decline as tankers passed through the Strait of Hormuz, easing worries of supply disruptions in the Middle East. Brent crude dropped 1.6 percent to $72.53 per barrel, while US West Texas Intermediate fell over 1 percent to $69.36.
The decline in oil prices eased some inflation concerns, though investors remained cautious about the US interest rate outlook. Markets are pricing in at least one rate hike this year, focusing on the Federal Reserve’s preferred inflation gauge. The US personal consumption expenditures (PCE) report is expected to show core prices rising 0.3 percent in May, with an annual rate of 3.4 percent, Reuters said.
The US dollar remained strong amid rising rate hike expectations. The dollar index stood at 101.6, having touched 101.80 in the previous session, its highest point since May 2025. Meanwhile, the Japanese yen stayed weak near 161.73 per dollar, close to levels that may prompt intervention by Japanese authorities.
A stronger dollar also pressured gold prices, which slipped below $4,000 per ounce for the first time this year. Spot gold last traded around $3,990 an ounce, nearing its lowest level since November.
— رويترز
تحليل خاص من عمانت | تصفح سوق عُمان
The strong AI-driven rally in Asian equities, led by chipmakers and tech giants, signals growing global demand for advanced technology and data center infrastructure, presenting Oman-based investors with opportunities in tech-linked sectors and innovation partnerships. Meanwhile, easing oil prices reduce inflationary pressures but underline the need for Oman’s businesses to diversify beyond hydrocarbons to hedge against volatile energy markets. Smart investors should monitor US interest rate movements and currency fluctuations closely, as these factors will influence capital flows and investment stability in the region.
