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Technology stocks advanced across Asian markets on Thursday after Micron Technology delivered a stronger-than-expected revenue outlook,
highlighting robust demand for memory chips used in artificial intelligence and data-centre infrastructure. The gains came as elevated US Treasury
yields continued to create a challenging backdrop for global markets.
Japan’s Nikkei rose more than 3%, while South Korea’s KOSPI gained about 1.7% and Taiwan’s benchmark index also moved higher. Nasdaq futures climbed 0.7%, while S&P 500 futures added 0.4%, pointing to a stronger opening for US stocks.
Micron forecast fiscal first-quarter revenue of $61.5 billion, plus or minus $1.5 billion, above the $57.02 billion average estimate from analysts tracked by LSEG. The company also said customer commitments under long-term supply agreements had increased to $32 billion from $22 billion in June.
The outlook underscored continued demand for advanced memory as technology companies expand their artificial intelligence infrastructure. Micron is a major supplier of high-bandwidth memory, which is used in systems designed to handle demanding AI workloads.
The technology gains came alongside renewed pressure in the US Treasury market. The benchmark 10-year Treasury yield reached 5.306%, its highest level since June 2007, adding to concerns about the effect of higher borrowing costs on financial markets.
Rising long-term yields can increase financing costs for businesses and reduce the present value investors place on future earnings. The move has therefore remained an important consideration for equity investors, particularly in growth-oriented technology stocks.
Inflation also remained in focus. Softer-than-expected US inflation data reduced expectations for another Federal Reserve rate increase this month, although higher energy prices continued to complicate the outlook for price pressures.
Investors are now balancing strong demand for AI-related semiconductors against tighter financial conditions. Upcoming US economic data, Federal Reserve communications and corporate earnings will provide further clues about the direction of interest rates and the outlook for technology stocks.
Japan’s Nikkei rose more than 3%, while South Korea’s KOSPI gained about 1.7% and Taiwan’s benchmark index also moved higher. Nasdaq futures climbed 0.7%, while S&P 500 futures added 0.4%, pointing to a stronger opening for US stocks.
Micron forecast fiscal first-quarter revenue of $61.5 billion, plus or minus $1.5 billion, above the $57.02 billion average estimate from analysts tracked by LSEG. The company also said customer commitments under long-term supply agreements had increased to $32 billion from $22 billion in June.
The outlook underscored continued demand for advanced memory as technology companies expand their artificial intelligence infrastructure. Micron is a major supplier of high-bandwidth memory, which is used in systems designed to handle demanding AI workloads.
The technology gains came alongside renewed pressure in the US Treasury market. The benchmark 10-year Treasury yield reached 5.306%, its highest level since June 2007, adding to concerns about the effect of higher borrowing costs on financial markets.
Rising long-term yields can increase financing costs for businesses and reduce the present value investors place on future earnings. The move has therefore remained an important consideration for equity investors, particularly in growth-oriented technology stocks.
Inflation also remained in focus. Softer-than-expected US inflation data reduced expectations for another Federal Reserve rate increase this month, although higher energy prices continued to complicate the outlook for price pressures.
Investors are now balancing strong demand for AI-related semiconductors against tighter financial conditions. Upcoming US economic data, Federal Reserve communications and corporate earnings will provide further clues about the direction of interest rates and the outlook for technology stocks.
