Micron's earnings report explodes, Korean stocks lead Asia-Pacific markets, SK Hynix soars 10%, Samsung surges 5%, gold drops below 4000, silver falls another 1%.

Micron Technology’s quarterly revenue guidance far exceeded Wall Street’s expectations, reigniting market confidence in the AI investment cycle. Coupled with easing tensions in the Middle East pushing oil prices down, Asia-Pacific stock markets soared across the board on Thursday, with US stock futures also rising simultaneously.

Meanwhile, as US-Iran negotiations progressed and the Strait of Hormuz became unimpeded, Brent crude oil fell below $73 a barrel, erasing all its "war premium," further boosting risk sentiment.

The market focus immediately shifted to the Fed's preferred inflation indicator to be released Thursday — the May Personal Consumption Expenditures (PCE) Price Index. This data is expected to have a significant impact on the dollar and risk appetite in the market.

Betashares investment strategist Hugh Lam commented:

Micron’s overnight results remind investors that the memory cycle, along with broader AI trading, will persist for the long term. While market sentiment swings with sharp stock price fluctuations, the structural supply constraints facing both DRAM and NAND provide a floor for these stocks, at least until 2027.

Micron Beats Expectations, AI Demand Resilience Confirmed

As mentioned by Wallstreetcn, Micron Technology delivered a historic financial report that strongly rebutted the skeptics: third-quarter gross margin soared to 84.9%, setting a 48-year company record and leaving Nvidia, Meta, and other tech giants far behind.

Revenue hit $41.46 billion and net profit $28.24 billion, both breaking records, with after-hours stock price surging 14%. More importantly, Micron has signed long-term locked price contracts with super large clients, and supply shortages may last until after 2027.

As the largest US manufacturer of computer memory chips, Micron, together with 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 (HBM), a key component for AI systems, continues to outpace supply, supporting industry prosperity.

On the same day, Qualcomm raised its non-mobile business revenue guidance, increasing its fiscal year 2029 target from the previously expected $22 billion to $40 billion, further reinforcing optimism about the semiconductor industry’s prospects.

Nomura Securities Senior Strategist Ito Takashi cautioned, however, that Micron’s financial report did not eliminate concerns about over-investment in data centers, and AI-related stocks are expected to continue fluctuating sharply with news headlines.

Asia-Pacific Chip Stocks Rally, SK Hynix’s US Listing Triggers Surge

Micron’s performance ignited rebound enthusiasm in the Asia-Pacific tech sector.

Korea Composite Stock Price Index (KOSPI) jumped more than 6%, triggering a circuit breaker.

SK Hynix soared over 10%, while Samsung Electronics rose more than 5% at one point.

Nikkei 225 index surged up to 3%, with chip testing equipment maker Advantest leading gains. Topix rose roughly 1.1%.

SK Hynix's rally was also directly catalyzed by its US listing plan. The company announced it plans to raise about $29.4 billion through issuing American Depositary Receipts (ADR) on Nasdaq, issuing 17.79 million new shares, with trading expected to begin on July 10, though the timeline may change.

SK Hynix stated that the ADR listing will broaden its investor base and further enhance its global influence in AI innovation hub, the US.

Sumitomo Trust Asset Management Chief Strategist Ueno Hiroyuki noted that Micron’s results "prompted investors to re-enter the market, explaining today’s rebound." He said:

Those who previously held long positions had accumulated considerable floating profits, so it was reasonable to take profit and wait for the earnings report. Once the results were confirmed not to be bad, they chose to buy back.

Oil Prices Drop Below War Premium as Mideast Tensions Ease

Brent crude continued its slide Thursday, falling below $73 a barrel, having dropped 4.3% the previous day, fully erasing all gains amassed since the escalation of Middle East conflicts. WTI crude fell about 1.6% to $69.19 a barrel over the same period.

The direct trigger for oil price declines was improved transit conditions in the Strait of Hormuz.

Data shows that after the US and Iran agreed to open the passage, at least 20 oil tankers carrying a total of 35 million barrels departed from the strait.

US Energy Secretary Chris Wright said at a conference in New York:

Iran will no longer have the ability to close the Strait of Hormuz.

The decline in oil prices is a double benefit to Asian markets: it directly reduces import cost pressure and improves overall risk sentiment. However, a strong dollar partially offsets the positive impact of low oil prices, suppressing Asian currencies.

PCE Data Becomes Next Risk; USD Volatile at High Level

Market attention has shifted to May’s PCE inflation data to be released Thursday.

According to a Dow Jones survey, economists expect overall PCE to rise 0.5% month-on-month, up from April’s 0.4%; year-on-year growth is expected to reach 4.1%, also higher than the previous 3.8%. Core PCE (excluding food and energy) is projected to grow 0.3% month-on-month and 3.4% year-on-year, both higher than April’s figures.

After Fed Chairman Kevin Warsh hosted his first rate decision meeting, the market saw a surge in bets on near-term rate hikes. US Treasuries rebounded Wednesday, with rate hike expectations slightly falling back.

During Thursday’s Asia-Pacific session, 10-year US Treasuries futures yield remained basically flat.

AT Global Markets Chief Market Analyst Nick Twidale stated that PCE data "will have a major impact on the market." He said:

If the data matches or exceeds expectations, the dollar will strengthen further, and the current risk-on mood may also be dampened.

Additionally, a stronger dollar puts pressure on gold. Spot gold price fell to about $3983/oz, breaking below the $4000 mark again.

Spot silver dropped over 1%, quoted at $56.78.

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