Tech Stocks Lift Asia Markets, Oil Gains on US-Iran Fears

Asian stock markets saw a much-needed boost on Thursday, with technology companies spearheading the gains as investor enthusiasm for the artificial intelligence boom resurfaced. However, oil prices climbed amid heightened tensions between the United States and Iran in the Middle East.

“

Big Tech does not need to stop spending for the earnings season to be positive. But the financial trade-off must improve.

Investor confidence in AI-related stocks had wavered in recent months due to concerns over high valuations and the timeline for returns on significant investments. This uncertainty had impacted several high-flying companies, particularly those in South Korea and Japan. A recent earnings report from Google-parent Alphabet, which indicated potential AI spending of up to $205 billion this year, far exceeding expectations, further fueled these concerns.

“

The best results will come from companies showing that AI demand is turning into revenue, margins and cash flow.

Despite the broader economic anxieties, traders in Asia seized the opportunity to reinvest in previously underperforming stocks. Seoul's market surged, driven by chip giants SK hynix and Samsung, while Tokyo's gains were supported by Advantest and Tokyo Electron. Other markets, including Hong Kong, Sydney, Taipei, Manila, and Jakarta, also closed higher. Attention now shifts to upcoming results from Microsoft, Meta, and Amazon for insights into their capital expenditure plans.

“

The next phase of the AI trade may reward those producing the highest returns from their infrastructure -- not simply those writing the largest cheques.

Meanwhile, escalating conflict between US and Iranian forces has stoked fears of renewed inflation due to rising oil prices. Brent crude surpassed $95 per barrel, reaching its highest point in some time, following threats from President Donald Trump. Iran's Foreign Minister, Abbas Araghchi, stated that Iran would retaliate against any attack on its infrastructure, emphasizing a clear defense doctrine. The potential disruption of oil and gas transit through the Strait of Hormuz, a critical global energy chokepoint, has further complicated the situation and raised the specter of a US Federal Reserve interest rate hike. Market participants are also monitoring potential new trade tariffs signaled by the US, adding to the global economic uncertainty.

“

our defense doctrine is clear: eye for an eye