Micron Technology's quarterly revenue guidance significantly surpassed Wall Street expectations, reigniting market confidence in the AI investment cycle. Combined with easing Middle East tensions pushing oil prices lower, Asia-Pacific markets rose across the board on Thursday, with U.S. stock futures also advancing.

Simultaneously, as U.S.-Iran talks progressed and the Strait of Hormuz reopened, Brent crude oil fell below $73 per barrel, erasing all "war premium" gains, further boosting risk sentiment.

Market focus then shifted to the release of the Federal Reserve's preferred inflation gauge, the May Personal Consumption Expenditures price index, due on Thursday. This data is expected to significantly impact the U.S. dollar's trajectory and overall market risk appetite.

An investment strategist at Betashares noted that Micron's overnight results reminded investors of the durability of the memory cycle and the persistence of the broader AI trade. While market sentiment can swing with sharp stock price movements, the structural supply constraints facing both DRAM and NAND provide a floor for further declines in these assets at least until 2027.

Micron's Earnings Beat Validates AI Demand Resilience

Micron Technology delivered a historic quarterly report, with its fiscal third-quarter gross margin soaring to 84.9%, not only a company record in its 48-year history but also surpassing other tech giants. Revenue and net profit both reached record highs, and the stock surged 14% after-hours. Crucially, Micron has signed long-term fixed-price agreements with hyperscale customers, suggesting tight supply could persist beyond 2027.

As a major U.S. memory chipmaker, Micron, alongside South Korea's Samsung Electronics and SK Hynix, is a core beneficiary of the data center spending boom. Demand for traditional memory chips and high-bandwidth memory, a key component for AI systems, continues to outpace supply, supporting the industry's positive outlook.

Qualcomm also raised its non-handset revenue guidance on the same day, significantly boosting its fiscal 2029 target, further strengthening market optimism for the semiconductor sector's prospects.

However, a senior strategist at Nomura cautioned that Micron's report does not eliminate concerns about potential over-investment in data centers, and AI-related stocks are likely to remain volatile based on news flow.

Asia-Pacific Chip Stocks Surge, SK Hynix U.S. Listing Ignites Rally

Micron's strong results ignited a rebound in the Asia-Pacific tech sector.

South Korea's KOSPI index rose over 6% at one point, triggering a trading halt.

SK Hynix shares jumped more than 10%, while Samsung Electronics shares gained over 5%.

Japan's Nikkei 225 index rose up to 3%, led by chip testing equipment maker Advantest, while the Topix index gained about 1.1%.

SK Hynix's gains were also directly fueled by its plan for a U.S. listing. The company announced its intention to raise approximately $29.4 billion through an American Depositary Receipt offering on Nasdaq, issuing 177.9 million new shares, with trading expected to start around July 10, though the schedule remains subject to change.

SK Hynix stated the ADR listing would broaden its investor base and enhance its global profile in the U.S., a center for AI innovation.

A chief strategist at Sumitomo Trust Asset Management noted that Micron's earnings "prompted investors to step back in and buy, explaining today's rebound," adding that those with long positions had taken profits ahead of the report and were now buying back in after confirming the results were not poor.

Oil Prices Fall Below War Premium as Middle East Tensions Ease

Brent crude extended losses on Thursday, falling below $73 per barrel after a 4.3% drop the previous day, completely erasing all gains accumulated since the escalation of Middle East conflicts. WTI crude fell about 1.6% to $69.19 per barrel.

The immediate catalyst for the oil price drop was the improved passage conditions in the Strait of Hormuz. Data showed at least 20 tankers carrying a combined 35 million barrels of crude oil had left the strait after the U.S. and Iran agreed to reopen the waterway.

The U.S. Energy Secretary stated at a conference in New York that Iran would no longer have the capability to close the Strait of Hormuz.

The decline in oil prices is a dual positive for Asian markets, directly reducing import cost pressures and improving overall risk sentiment. However, a strong U.S. dollar has partially offset the positive effects of lower oil prices, putting pressure on Asian currencies.

PCE Data Looms as Next Risk, Dollar Holds Strong

Market attention has turned to the May PCE inflation data release. A Dow Jones survey shows economists expect the headline PCE to rise 0.5% month-over-month, up from 0.4% in April, with a year-over-year increase of 4.1%, also higher than the previous 3.8%. Core PCE is forecast to rise 0.3% monthly and 3.4% annually, both above April's readings.

Following the Federal Reserve's latest policy meeting, market bets on near-term rate hikes initially emerged but receded slightly on Wednesday as U.S. Treasuries rallied.

During the Asia-Pacific session on Thursday, 10-year U.S. Treasury futures yields were largely flat.

A chief market analyst at AT Global Markets stated that the PCE data "will have a significant impact on markets," adding that if the data is in line with or above expectations, the U.S. dollar could strengthen further, potentially dampening the current positive risk sentiment.

Furthermore, dollar strength weighed on gold, with the spot price falling to approximately $3,983 per ounce, once again dropping below the $4,000 level.

Spot silver declined over 1% to $56.78.