Asia Stocks Rebound as Semiconductor Rally Follows Micron Outlook

Semiconductor-Led Rally Drives Asia Markets Higher

Asia stocks rallied on Thursday, with South Korea’s KOSPI and Japan’s Nikkei 225 leading regional gains after Micron Technology Inc reported stronger-than-expected earnings and forecast robust demand for AI memory chips. The outlook from Micron helped ease concerns that stretched technology valuations were undermining the sector’s recent rally and triggered a broad rebound in semiconductor shares.

In South Korea, the KOSPI surged 5.2%, or 442 points, supported by sharp advances in memory-chip makers. Samsung Electronics Co Ltd climbed 5.4%, while SK Hynix Inc surged 10.9%, helping to reverse part of the roughly $1.3 trillion rout in global technology stocks seen earlier in the week.

Japan’s Nikkei 225 rose 4.0%, or nearly 2,800 points. Key semiconductor-related names also advanced strongly, with Advantest Corp. up 12.8%, Tokyo Electron Ltd. gaining 8.2%, and Kioxia Holdings Corp adding 8%.

The regional moves tracked gains in U.S. equity futures during Asian trading. S&P 500 Futures rose 0.5%, while Nasdaq 100 Futures rallied 1.8% after Micron’s report.

Mixed Performance Across Broader Asia-Pacific Markets

Chinese equity markets posted modest gains. The Shanghai Shenzhen CSI 300 rose 1.2%, while the Shanghai Composite added 0.3%. Sentiment was supported as Beijing began marketing up to €5 billion ($5.7 billion) of sovereign bonds, potentially its largest-ever euro-denominated sale, alongside additional measures aimed at improving monetary policy operations.

Hong Kong’s Hang Seng Index fell 1.0%, pressured by profit-taking in technology shares despite the broader regional recovery. However, Chinese chip stocks traded in Hong Kong moved higher, with Semiconductor Manufacturing International Corp gaining 1.5% and Hua Hong Semiconductor Ltd up 2.3%. Taiwan Semiconductor Manufacturing also edged 0.6% higher.

Elsewhere in the region, Australia’s ASX 200 slipped 0.3%, underperforming its peers even as data showed the economy added 40,300 jobs in May and the unemployment rate unexpectedly eased to 4.4%, indicating a resilient labor market after recent Reserve Bank of Australia policy tightening. Indonesia’s Jakarta Stock Exchange Composite Index rose 0.7%, Thailand’s SET Index climbed 0.5%, and India’s Nifty 50 opened 0.6% higher.

Investors were also monitoring upcoming U.S. Personal Consumption Expenditures (PCE) inflation data, the Federal Reserve’s preferred inflation gauge, for further indications on interest rate trends. Markets additionally kept an eye on U.S.-Iran negotiations, amid efforts to build on an interim ceasefire despite ongoing disagreements over nuclear inspections and regional security.

FAQ

What triggered the rebound in Asia’s semiconductor stocks?
Micron Technology Inc’s stronger-than-expected earnings and forecast for robust AI memory chip demand improved sentiment toward the sector, easing concerns about high valuations and sparking a broad rebound in semiconductor shares.

Which Asian indices recorded the strongest gains?
South Korea’s KOSPI was the strongest performer, rising 5.2%, followed by Japan’s Nikkei 225, which gained 4.0%.

How did Chinese and Hong Kong markets perform?
The Shanghai Shenzhen CSI 300 rose 1.2% and the Shanghai Composite gained 0.3%, while Hong Kong’s Hang Seng Index fell 1.0%, weighed by profit-taking in technology stocks.

What key macroeconomic data are investors watching?
Investors are focused on U.S. Personal Consumption Expenditures (PCE) inflation data, the Federal Reserve’s preferred inflation gauge, for further guidance on interest rate prospects.