Asian Stocks Rise, Chipmakers Boosted by AI Optimism
Asian Stocks Rise, Chipmakers Boosted by AI Optimism
Asian stock markets rallied on Thursday (July 23rd), as shares of regional chipmakers gained, buoyed by the surge in global spending on artificial intelligence (AI) infrastructure. The MSCI Asia Pacific Index rose 0.8%, while South Korea's Kospi surged more than 3%.
The rise in chip stocks was the main driver of the market. Samsung Electronics and SK Hynix each rose more than 4%, seen as key beneficiaries of the growing demand for semiconductors for global AI development.
However, sentiment toward the global technology sector was still being tested by the financial results of major US companies. Alphabet fell more than 3% after raising its capital expenditure plans for this year, while IBM weakened due to lower annual sales prospects. Tesla also fell 4% after its performance missed estimates.
Market attention was also focused on the renewed rise in oil prices. Brent rose 2% to around US$96 per barrel after the Iran-backed Houthi group said it had targeted two Saudi Arabian tankers in the Red Sea. This escalation added to concerns about energy supply disruptions from the Middle East.
The oil rally also put pressure on the US bond market. The two-year Treasury yield rose four basis points, while the 30-year US bond yield remained above 5% for the longest period since the onset of the financial crisis. This reflects investor concerns about rising debt and stubbornly declining inflation.
In terms of market impact, optimism about artificial intelligence (AI) continues to support Asian stocks, particularly the semiconductor sector. However, the oil rally due to the Middle East conflict could re-ignite inflation risks and make the Fed's policy direction even more unpredictable. If energy prices continue to rise, the stock market is at risk of renewed volatility, bond yields could remain high, and the Japanese yen remains vulnerable to pressure due to Japan's heavy reliance on energy imports. (asd)
Source: Newsmaker.id
