Asian Shares Surge on Tech Mood Swing, Oil Retreats

Asian share markets surged as sentiment towards technology stocks turned positive, with Japan's Nikkei climbing 3.0% and South Korea adding 3.4% in a continuation of its run of wild swings.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.5%.

Not all tech firms benefited equally, however. Investors appeared to be taking profits on AMD even as its results beat forecasts, with shares in the chipmaker sinking 9% after the bell.

AI and satellite group SpaceX shed 7.5%, undoing much of a rally in regular trading time, on worries that capital expenditure was eating up all its cash flow. That has been a recurring concern across AI stocks given the vast cost of compute power, with borrowing costs for the sector continuing to rise.

"SpaceX continues to execute strongly operationally, but its ambitious investment program means additional capital will almost certainly be required over the medium to longer term," said Chris Weston, head of research at broker Pepperstone. "How management funds that growth, and at what cost, is likely to remain a central theme for investors over the coming quarters."

Nasdaq futures dipped 0.1% on the earnings results, while S&P 500 futures added 0.2% after hitting all-time highs on Tuesday. EUROSTOXX 50 futures gained 0.3%, DAX futures rose 0.5% and FTSE futures added 0.1%.

Oil slide boosts bonds

Sentiment was supported by an ongoing slide in oil prices after Qatar said mediators were making progress in efforts to end the US-Iran war, though details were lacking.

Brent crude eased 0.4% to US$79.02 a barrel, a long way from its July top of US$102, while US crude dropped 0.5% to US$75.35.

The pullback provided relief from inflation fears and boosted bonds globally, with 10-year Treasury yields at 4.6187%, down from last week's high of 4.747%. Markets sharply pared the probability of a September Federal Reserve rate hike to 57% from 67%.

Fed Bank of Kansas City president Jeff Schmid nonetheless called for tighter policy to bring inflation back to the 2% target.

The New Zealand dollar slipped 0.2% after unemployment hit a decade peak of 5.6% in the June quarter. The euro was flat at US$1.1532 and the dollar eased to 157.53 yen, with intervention threats lingering. US treasury secretary Scott Bessent said he was sure Bank of Japan governor Kazuo Ueda will "do what is best" for the economy. Gold edged up 0.1% to US$4,080 an ounce.