Tech rally lifts Asian shares as oil prices slide

Bangkok: Asian shares rose on Thursday, driven by strong gains in technology stocks in Japan and South Korea, as oil prices fell amid signs of easing geopolitical tensions. Investor sentiment was lifted by a surge in major U.S. chipmakers following stronger-than-expected earnings and outlooks. Qualcomm’s shares jumped 12 percent in after-hours trading after raising its annual revenue forecast to $40 billion and unveiling a new data centre chip. Micron Technology also climbed nearly 16 percent after upgrading its forecast and beating analyst expectations. These gains spilled over into Asian markets, where Tokyo’s Nikkei 225 rose 4.1 percent to 71,995.59. Technology stocks led the rally, with Tokyo Electron gaining 7.1 percent and Advantest surging 13.4 percent. South Korea’s Kospi index reached a record high, climbing 5.9 percent to 8,968.22. Semiconductor giants Samsung Electronics and SK Hynix advanced 5.4 percent and 11.6 percent respectively. Elsewhere in the region, gains were more modest. Taiwan’s Taiex rose 0.8 percent and India’s Sensex edged up 0.6 percent. China’s Shanghai Composite added 0.4 percent, while Hong Kong’s Hang Seng fell 1.4 percent. Australia’s S&P/ASX 200 declined 0.5 percent. On Wall Street, markets closed mixed on Wednesday, with losses in major technology stocks weighing on sentiment. The S&P 500 slipped 0.1 percent, while the Nasdaq Composite dropped 0.4 percent. The Dow Jones Industrial Average, less heavily weighted towards technology stocks, rose 10.4 percent. Oil prices decline Oil prices declined sharply, falling more than $1 and returning closer to levels seen before the conflict involving Iran began. Brent crude dropped 3.8 percent to $73.87 a barrel, while U.S. crude fell 3.9 percent to $70.34. Early Thursday trading saw Brent down further to $72.90 and U.S. crude at $69.37. Energy stocks were among the biggest losers on Wall Street, with Exxon Mobil falling 2 percent and Chevron declining 2.6 percent. The drop in oil prices comes as the United States and Iran continue negotiations over a potential resolution to their conflict. Meanwhile, some sectors performed strongly, with homebuilders gaining after the approval of legislation seen as favourable for the industry. KB Home surged 16.7 percent, while D.R. Horton rose 6.7 percent. Investors are also awaiting the Federal Reserve’s preferred inflation indicator, the Personal Consumption Expenditures (PCE) index, expected to show inflation rising to 4.1 percent in May. Rising prices, partly driven by tariffs and earlier increases in energy and shipping costs, remain a key concern for policymakers.