Asia stocks jump with US futures on Micron outlook

[SINGAPORE] Asian stocks rallied with US equity futures after Micron Technology’s blowout sales outlook reignited confidence in the artificial-intelligence trade.

Contracts for the Nasdaq 100 were up almost 2 per cent while those for the S&P 500 rose 0.5 per cent. South Korea’s Kospi benchmark surged nearly 5 per cent in early trading and the broader MSCI Asia-Pacific Index jumped more than 1 per cent.

Micron, the largest US maker of computer memory chips, soared about 15 per cent after the market close as its quarterly sales forecast crushed Wall Street estimates, signalling that an AI-fuelled growth run remains strong.

The closely watched results, coupled with a slide in oil prices, bring relief to equity traders in Asia after a two-day decline that dragged the regional benchmark to its lowest in about two weeks. Brent crude extended losses after tumbling more than 4 per cent in the last session to close below US$74 a barrel on signs of swelling supply and progress on a US-Iran peace deal.

Focus is also on the US dollar, with a broad gauge of the greenback having risen to a seven-month high on Wednesday (Jun 24) after three straight days of gains, creating headwinds for Asian currencies just as a decline in oil prices towards pre-war levels offers some reprieve.

Meanwhile, easing inflation concerns ahead of the release of the US Federal Reserve’s preferred price gauge fuelled a rally in Treasuries during the US session.

Micron “far exceeded analyst expectations and, crucially, forecast robust future chip demand”, said Kyle Rodda, an analyst at Capital.com. “US futures have more than recovered the losses sustained in cash trade, positioning Asian markets for a much more positive session.”

Micron’s results have arrived at a pivotal moment for the AI trade, with chipmakers and other technology stocks under pressure earlier this week. Along with South Korea’s Samsung Electronics and SK Hynix, Micron has been a major beneficiary of the data-centre spending boom.

Demand for conventional memory chips and high-bandwidth memory, a key component in AI systems, continues to outstrip supply.

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Further reinforcing optimism around the sector, SK Hynix announced plans for a US stock listing. The company is seeking about US$29 billion in the offering as it looks to capitalise on surging demand for advanced memory products. SK Hynix’s shares surged as high as 12 per cent in early Asian trading.

“Micron’s earnings overnight have reminded investors that the durability of the memory cycle and broader AI trade is here to stay,” said Hugh Lam, an investment strategist at Betashares. “While sentiment can whipsaw in reaction to pronounced share price moves, structural supply constraints across both DRAM and Nand put a floor under any further weakness in these names at least throughout 2027.”

Meanwhile, Wednesday’s rally in Treasuries saw the 10-year yield plunge 11 basis points, while the 30-year touched 4.85 per cent, the lowest since Apr 8. The two-year yield, which is more closely tied to Fed policy expectations, slipped to about 4.15 per cent.

The moves signalled another reassessment of the Fed’s likely interest-rate path, a week after traders piled into bets it may hike as soon as next month following chairman Kevin Warsh’s first meeting leading the bank. Forecasters expect Thursday’s personal consumption expenditures price index to show acceleration on both a monthly and year-over-year basis in May. BLOOMBERG