News that South Korean behemoth SK hynix had started mass production of a more advanced AI chip also fanned optimism among investors already upbeat after China unveiled a raft of economy-boosting measures this week
Tech firms led an Asian market rally on Thursday on renewed optimism about demand for AI equipment following a strong earnings outlook from US chip company Micron.
News that South Korean behemoth SK hynix had started mass production of a more advanced AI chip also fanned optimism among investors already upbeat after China unveiled a raft of economy-boosting measures this week.
The positive sentiment on trading floors comes ahead of the release of the Fed’s preferred gauge of inflation which could play a role in officials’ plans for interest rates, following last week’s big cut.
Tech shares have been the main driver of a surge in global markets this year – pushing several to record highs – as demand for AI rises.
While they have seen a lull in recent weeks on concerns the rally may have been overblown, there is optimism that there are more gains ahead.
The latest jump came after Micron Technology on Wednesday unveiled better-than-expected sales and profit forecasts, which ramped up hopes for demand for AI gear.
That was followed on Thursday by reports that SK hynix had started producing the new, advanced chips, pushing its stocks up by more than 8% in Seoul.
There were also big gains for rival South Korean giant Samsung and Japan’s Sony, while e-commerce titan Alibaba and JD.com joined the tech surge in Hong Kong.
Tokyo gained more than 2% as exporters were lifted by the weaker yen, which was staying at three-week lows despite bets on further Fed monetary policy easing.
Hong Kong and Shanghai continued to build on the week’s strong gains, while Sydney, Seoul, Singapore, Wellington, Taipei, Manila and Jakarta were also higher.
