Asian Stock Rises on Chipmakers, with Brent Reaching $96 – Asia Market Wrap

Asian stocks rose on Thursday as chipmakers extended their recent rally, supported by expectations they will be major beneficiaries of continued AI investment. MSCI’s Asia Pacific Index gained 1%, while South Korea’s Kospi climbed 3.7%. Samsung and SK Hynix both rose more than 3% as investors remained optimistic about long-term demand for AI infrastructure.

Despite the strength in Asia, caution persisted elsewhere after Alphabet unveiled higher-than-expected capital spending plans. Its shares fell more than 3% in after-hours trading, while Tesla dropped 4% and IBM also edged lower following earnings. Nasdaq 100 futures slipped 0.2%, with European markets also set for a weaker open ahead of the ECB’s policy decision.

Oil prices continued to surge, with Brent rising as much as 2.5% to nearly $96.50 a barrel, the highest level since early June. The move followed reports that Iran-backed Houthi militants targeted two Saudi oil tankers in the Red Sea, raising concerns over potential supply disruptions.

Geopolitical tensions remained in focus after Trump warned the US would target Iranian infrastructure if attacks on vessels in the Strait of Hormuz continued. Iran responded with its own warning, adding to fears that the conflict could escalate further and disrupt global energy markets.

The renewed rise in oil prices has reinforced concerns that inflation could remain elevated, complicating the Fed’s policy outlook. With the central bank meeting next week, money markets are pricing roughly a 30% chance of a rate hike and a 70% probability that policymakers leave interest rates unchanged.