Tech lifts Asia stocks, Brent crude back above US$92

Asian stock markets experienced a second consecutive day of gains, driven by a surge in technology shares. This positive trend mirrored overnight advances on the Nasdaq, signaling renewed investor confidence in the tech sector. The rally comes despite previous concerns about the sustainability of the artificial intelligence boom and whether tech valuations have become overheated. Companies are being closely watched for their spending guidance, which could impact chip demand and free cash flow, with results from major tech firms like Tesla and Google's parent company, Alphabet, expected soon. Meanwhile, Brent crude oil prices rose above $92 a barrel, reaching their highest intraday level since June 11. This increase is attributed to escalating tensions in the Middle East, following President Donald Trump's statement that the United States was "not finished" attacking Iran. The U.S. military has conducted consecutive nights of strikes aimed at degrading Iran's ability to threaten commercial shipping in the Strait of Hormuz. Trump also issued a warning regarding potential actions against Yemen's Iran-backed Houthi rebels if they proceed with threats to blockade Saudi Arabian ports. Analysts suggest oil prices may remain within the $80 to $90 range, but a closure of the Red Sea could push prices significantly higher. In currency markets, the Japanese yen faced renewed pressure, falling below 163 against the dollar, its weakest point since 1986. This weakening is partly linked to the rise in oil prices.

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During the early phase of the (AI stock) boom, companies were rewarded simply for announcing larger investment plans.