HONG KONG - South Korea's Kospi soared more than five percent in a tech-led surge across Asia on Thursday as a forecast-busting earnings report from US chip titan Micron helped traders brush off their latest worries about the AI investment boom.
The regional rally was helped by another plunge in oil prices to below pre-war levels amid growing optimism over US-Iran peace talks and news of more ships passing through the Strait of Hormuz.
Markets have endured a rollercoaster run this week amid fears that the eye-watering advances in tech firms in recent years may have gone too far, while questions are asked about when they will see returns on the trillions pumped into the AI sector.
While Wall Street has suffered, the selling has been particularly painful in Seoul, where the Kospi -- which has hit multiple records this year -- plunged 10 percent on Tuesday with chip giants SK hynix and Samsung taking the brunt of the action.
However, the mood was flipped when Micron Technology announced fourth-quarter revenue forecasts of $50 billion, blowing expectations for around $43 billion out of the water.
The news reignited confidence in the AI sector, which has been the key driver of a surge across markets this year.
It also came hours after SK hynix said it planned to raise $29 billion by listing on Wall Street's tech-heavy Nasdaq, saying it would use the cash to fund chip facilities.
Analysts said the move was seen as likely ramping up the firm's valuation through capacity expansion and greater foreign investor access.
SK hynix jumped 13 percent and Samsung more than five percent, pushing up the Kospi past six percent at one point.
Tokyo's Nikkei also rallied, piling on more than four percent as tech giants Advantest and Tokyo Electron powered higher.
Shanghai, Singapore, Taipei, Mumbai, Bangkok, Wellington, Manila and Jakarta were all in the green.
However, Hong Kong and Sydney struggled. London, Paris and Frankfurt rose.
Seoul, Tokyo and Taipei -- where many of the world's hardware makers are listed -- have been at the forefront of the rally this year, taking over from Wall Street, where many of the big-name performers are downstream software firms.
- AFP