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Micron’s earnings lift Asian chip stocks

Micron’s stronger-than-expected earnings buoyed Japanese chip shares on Thursday, helping Asian stocks trade mostly higher. US equities ended Wednesday mixed despite softer inflation, as rising oil prices kept concerns about future price pressures alive. The Swiss National Bank (SNB) sees robust economic growth, while UK GDP was revised higher and inflation rose in Germany, France and Italy. Today, investors will watch Swiss inflation, European and US manufacturing surveys and US jobless claims. European Central Bank (ECB) President Christine Lagarde is also due to speak, while Accenture and Nike are set to report earnings.

  • Date
  • Author Amira Scherz, Junior Investment Writer
  • Reading time 5 minutes

DRAM memory chips
DRAM memory chips © Shutterstock

Asian stocks mostly rose on Thursday, led by a 3.2% gain in Japan’s Nikkei 225 after strong earnings from US chipmaker Micron. South Korea’s KOSPI gained 1.7%, while Australia’s S&P/ASX 200 fell 1.8% after the country’s trade surplus narrowed sharply. Japan’s manufacturing PMI fell to 54.1 in September from 54.9 in August, marking its slowest expansion in six months as output and orders lost momentum, although export demand remained strong. In other markets, gold rose to around USD 4220 an ounce after losing 6% last month. Brent crude fell 1.4% to USD 96.64 a barrel and West Texas Intermediate declined 1.8% to USD 88.84, while bitcoin gained 0.9% to around USD 84,200.

US stocks mixed despite softer inflation

US equity markets ended mixed on Wednesday as rising oil prices offset relief from lower-than-expected inflation: the Dow Jones fell 0.9% to 50,906.05 points, the S&P 500 lost 0.3% to 7651.54, and the Nasdaq-100 gained 0.2% to 30,408.50. The US personal consumption expenditures (PCE) price index held at 3.4% in August, while core inflation stood at 3%. Both readings were below forecasts, reducing expectations of a Federal Reserve rate increase in October. Consumer spending rose 0.9% month-on-month in August, while annualised second-quarter GDP growth was revised up to 2.2% from 1.5%. Simultaneously, US private employers added 90,000 jobs last month, up from a revised 36,000 in August, according to ADP. Meanwhile, the US goods trade deficit widened 11.5% to USD 132.6 billion in August as imports surged, potentially weighing on third-quarter growth.

US chipmaker Micron beats earnings forecasts

Micron reported fiscal fourth-quarter earnings of USD 33.42 per share and revenue of USD 54.23 billion on Wednesday, both above market expectations. A year earlier, earnings were USD 3.03 per share on revenue of USD 11.31 billion. Strong demand for AI memory supported the increase, and Micron forecast first-quarter revenue of USD 60 billion to USD 63 billion, also ahead of expectations.

Swiss growth robust and UK GDP upgraded

The Swiss National Bank said on Wednesday that the economy grew robustly in the third quarter, with manufacturing gaining pace and companies planning to hire. It expects GDP growth of 1.5% to 2% in 2026 and around 1.5% in 2027, having left its policy rate at 0% last week. In the UK, second-quarter GDP growth was revised up to 0.5% from 0.4% on Wednesday, though it slowed from 0.6% in the first quarter, with net trade providing the main boost. Real household disposable income per head rose 1% after falling 0.8% in the previous quarter.

Inflation rises in Germany, France and Italy

The annual inflation rate of consumer prices rose in September to 3.3% in Germany from 2.9% in August, to 3% in France from 2.4%, and to a three-year high of 4.2% in Italy from 3.3%, figures released on Wednesday showed. Higher energy prices contributed to the increases, while German core inflation held at 2.4% and EU-harmonised inflation reached 3.4% in France and 4.1% in Italy. German retail sales rose 1.3% in August after falling 3.2% in July, but remained 0.4% below their year-earlier level; unemployment held at 6.4% as the jobless total rose by 12,000 to 3.012 million. French household spending fell 0.5% in August after rising 0.4% in July.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Accenture and Nike.

Economic data in focus: Swiss Consumer Price Index and Swiss retail sales (08:30), Swiss Purchasing Managers’ Index (09:30), Italian Purchasing Managers’ Index (09:45), French Purchasing Managers’ Index (09:50), German Purchasing Managers’ Index (09:55), Italian unemployment rate (10:00), euro-area Purchasing Managers’ Index (10:00), UK Purchasing Managers’ Index (10:30), euro-area unemployment rate (11:00), US weekly initial jobless claims (14:30), Canadian Purchasing Managers’ Index (15:30), European Central Bank President Christine Lagarde speaks (15:30), US Purchasing Managers’ Index (15:45), US ISM Purchasing Managers’ Index (16:00), Swiss National Bank Chairman Martin Schlegel speaks (17:30).

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Editor: Alessandro Fezzi
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