Macro update
Semiconductor stocks drive Asian markets higher: Equities in Japan and South Korea advanced on Friday as gains in AI and chip-related companies outweighed concerns over escalating US-Iran tensions, with the KOSPI rising more than 5% and the Nikkei adding 1.8% ahead of SK Hynix’s US market debut.
Micron’s investment plans lift the technology sector: The Nasdaq gained 1.3% overnight after Micron announced plans to invest more than $250 billion in the US by 2035, helping propel the Philadelphia Semiconductor Index 3% higher.
SK Hynix prepares for landmark US listing: The South Korean memory chipmaker priced its American Depositary Receipts at $149, raising approximately $26.5 billion in what is expected to become the world’s second-largest initial public offering after SpaceX’s record-breaking flotation last month.
Yen firms on hopes of increased domestic investment: The Japanese currency strengthened to ¥161.69 per dollar after Finance Minister Satsuki Katayama said the government would encourage pension funds, including the GPIF, to increase allocations to domestic assets, supporting Japanese government bonds.
Oil prices remain supported by Middle East tensions: Brent crude traded around $76.73 a barrel and remained on track for a weekly gain of around 5% to 6%, as renewed hostilities near the Strait of Hormuz kept a geopolitical risk premium embedded in prices.
Gold edges lower as rate-hike expectations strengthen: Spot gold slipped to $4,115.79 an ounce and was on course for a weekly decline of around 1.5%, as escalating tensions in the Gulf reinforced expectations that the Federal Reserve will raise interest rates later this year.
