Asian shares gain after chip rally, oil prices slip

Asian shares gained after rebound in chip stocks lifted sentiment after a tech-led rally overnight on Wall Street.

South Korea's Kospi index was up 2.6%, while Japan's Nikkei was uo 1.3%. The MSCI Asia Pacific Index was up 0.6%.

The chip sector remained in focus, with SK Hynix Inc. gaining 2.5% in Seoul after raising $26.5 billion in its American depositary share offering.

Brent crude slipped 0.2% to $76.10 a barrel as traders priced in a limited US-Iran conflict, easing initial concerns that energy infrastructure would come under attack again. The US also said talks with Iran would continue despite the recent strikes. Treasuries gained Thursday, sending 10-year yields down three basis points to 4.55%.

Optimism toward technology resurfaced as investors focused on signs that the AI investment boom remains intact after a sharp bout of selling in chip stocks earlier this week.

Spending by chip companies is at the center of that debate. In the latest capital expenditure announcement, Micron Technology Inc. said it plans to increase spending on new plants in the US to $250 billion to help meet demand fueled by the artificial-intelligence boom.

SK Hynix’s ADR sale is expected to help fund growing spending plans amid soaring demand for equipment used in AI computing. The company and Samsung Electronics Co. are poised to ramp up investment in South Korea as part of a government-led initiative worth $880 billion.

The ADRs are set to begin trading Friday on the Nasdaq Global Select Market under the symbol SKHYV, which will change to SKHY when they begin regular trading July 13.

With inputs from Bloomberg