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Micron lifts Asian tech stocks

Asian stock markets surged on Thursday after upbeat guidance from Micron revived confidence in the artificial intelligence trade, driving sharp gains in semiconductor shares across the region. South Korea’s KOSPI and Japan’s Nikkei 225 led the advance, while US stocks had ended mixed on Wednesday, with the Dow close to a record high but the Nasdaq slipping ahead of Micron’s results. Oil prices fell further as shipping through the Strait of Hormuz resumed, while gold hovered near a seven-month low amid a firmer US dollar. Investors will now look to US Personal Consumption Expenditures (PCE) inflation and gross domestic product (GDP) and labour market data on Thursday for fresh signals on the Federal Reserve’s next move.

  • Date
  • Author Shane Strowmatt, Senior Investment Writer
  • Reading time 5 minutes

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Asian stock markets rose on Thursday after stronger-than-expected guidance from US memory-chip maker Micron revived confidence in the artificial intelligence trade, lifting semiconductor shares across the region. South Korea’s KOSPI surged 5.9%, while Japan’s Nikkei 225 gained 4.6%, led by advances in Samsung Electronics, SK Hynix, Advantest and Tokyo Electron after a sharp technology-led sell-off earlier this week. Chinese markets were mixed, with the CSI 300 up 0.9% and Hong Kong’s Hang Seng down 1.7%, while Australia’s ASX 200 slipped 0.6% despite data showing 40,300 jobs were added in May and the unemployment rate fell to 4.4% from 4.5%. India’s Nifty 50 was trading 0.7% higher.

US stocks mixed as tech slips

US stocks ended mixed on Wednesday, with the Dow Jones Industrial Average rising 0.4% to 51,848.90 points, while the S&P 500 fell 0.1% to 7358.22 and the Nasdaq 100 lost 0.4% to 29,220.06. Technology shares came under renewed pressure ahead of memory-chip maker Micron’s quarterly results, after a sharp sell-off on Tuesday, although easing concerns about inflation and lower oil prices helped lift the blue-chip Dow close to a record high. Micron shares shot up nearly 18% in after-hour trading, after the company reported record third-quarter results after the bell on Wednesday, with revenue rising to USD 41.5 billion, adjusted earnings reaching USD 25.11 per share and gross margin widening to 84.9%, more than double the level of a year earlier. The memory-chip maker also forecast gross margin of about 86% for the current quarter, beating market expectations and signalling that demand linked to artificial intelligence remains strong despite this week’s sell-off in semiconductor shares.

German business mood improves

Germany’s ifo Business Climate Index rose to 85.6 in June from 85.0 in May, data released on Wednesday showed, as companies viewed current conditions more favourably and became slightly less pessimistic about the next six months. The expectations component edged up to 84.1 from 83.9, while the current-conditions gauge increased to 87.0 from 86.1. Sentiment improved across manufacturing, services, trade and construction, with firms citing lower uncertainty and hopes that geopolitical tensions will ease, although weak order books remained a concern in manufacturing and construction. European stock indices were mixed on Wednesday. The Euro Stoxx 50 edged down 0.2%, while Germany’s DAX lost 0.6%. By contrast, France’s CAC 40 gained 0.5% and the Swiss Market Index rose 1.5%.

Oil prices fall as Hormuz reopens

Oil prices fell on Thursday, with Brent crude oil and West Texas Intermediate (WTI) both trading lower at around USD 73 and USD 69 per barrel, respectively, erasing gains made since the Middle East conflict began in late February. The decline came as investors grew more confident about global supply after more than 20 tankers carrying roughly 35 million barrels of crude resumed passage through the Strait of Hormuz following a US-Iran agreement to reopen the route. Gold prices hovered near a more than seven-month low on Thursday, with spot gold down 0.4% at USD 3990 an ounce, falling below USD 4000 for the first time since November. The decline reflects a stronger US dollar, which has risen for six straight sessions to a 13-month high, and growing expectations that the Federal Reserve could tighten policy further later this year.

Corporate and economic calendar

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: German GfK Consumer Climate (08:00), US personal consumption expenditures (14:30), US gross domestic product (14:30), US durable goods orders (14:30), US weekly initial jobless claims (14:30).

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Editor: Alessandro Fezzi
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