Stocks Rise as Brent Rises and the Chip Rally Grows – Asia Market Wrap

Chip stocks extended their global rebound on Wednesday as investors renewed confidence in the AI trade, driving Asian equities higher despite a more cautious tone in US futures. MSCI’s Asia Pacific Index gained 1%, following Tuesday’s strongest rally in a month, while South Korea’s Kospi jumped 4% as selling pressure from leveraged positions continued to unwind. Samsung and SK Hynix led gains across the region.

The advance followed a more than 5% surge in a US semiconductor index on Tuesday, recovering from bear market territory after last week’s selloff. Investors are now looking ahead to Alphabet’s earnings for fresh guidance on AI-related spending, although Nasdaq 100 futures slipped 0.4% and S&P 500 futures edged lower as traders adopted a more cautious stance.

Oil prices continued to climb, adding to inflation concerns. Brent crude rose 1.4% to $92.25 a barrel after Trump downplayed the chances of immediate peace talks with Iran, reinforcing expectations of prolonged geopolitical tensions. The move pushed US Treasury yields to their highest level in two months.

Precious metals also advanced as investors sought safe-haven assets. Gold climbed as much as 1.6% to around $4,142 an ounce, its highest level in two weeks, while silver gained 1.5% and platinum also moved higher.

In currency markets, the Yen remained under pressure after weakening beyond 163 per Dollar for the first time since 1986. Japanese officials reiterated they are prepared to intervene if needed, as traders continued to test the authorities’ willingness to support the currency.