Asia Open: Micron Beat Sparks Semiconductor Rally, USD Firm at 101.36
Micron's 15% after-hours surge drives Asia-Pacific semiconductor rally. Dollar index hits 13-month high at 101.36, pressuring gold to 7-month low. PCE data due later today.
Alpha Score of 49 reflects weak overall profile with strong momentum, poor value, moderate quality. Based on 3 of 4 signals – score is capped at 90 until remaining data ingests.
Asia markets opened higher Thursday, led by a surge in semiconductor stocks after Micron's (MU) earnings beat. The dollar held near a 13-month high, capping gains in commodities and pressuring the Australian and New Zealand dollars.
Micron shares jumped 15% in after-hours trading to $1,213 after the company reported a stronger-than-expected fiscal third quarter. The move lifted futures for the Nasdaq 100 by 1.6% in the Asian session, while S&P 500 futures added 0.4%. During regular US hours Wednesday, the S&P 500 fell 0.1% and the Nasdaq 100 dropped 0.4%.
The dollar index climbed 0.2% to 101.36, its highest since May 2025, extending what strategists described as a dollar near sharpest monthly gain in a year as rate bets build. The advance reflected expectations that US interest rates will stay higher for longer, reinforced by steady Treasury yields – the 2-year around 4.15%, the 10-year near 4.40% – ahead of the personal consumption expenditures price index due later Thursday. A hot PCE print would strengthen the case for the Federal Reserve to hold rates, analysts said. A softer number would revive bets on a cut.
The stronger dollar added downward pressure on gold, which slid to a seven-month low of $3,981 an ounce in Asian trading. Crude oil extended its decline, with Brent falling 1.3% to $72.88 a barrel, the lowest since early March. The move followed a bearish breakdown below the 200-day moving average for West Texas Intermediate crude, a development that technical strategist Kelvin Wong said reinforced a near-term bearish outlook. He identified $75.25 per barrel as a key resistance; failure to clear it opens a drop toward $67.40, with $63.80 as the next major floor. A break above $75.25 would invalidate the bearish scenario and allow a corrective rebound toward $77.39, the strategist said.
Among G10 currencies, the Australian and New Zealand dollars were the weakest. The Aussie fell 0.1% to $0.6893, the kiwi dropped 0.2% to $0.5641. Both remain sensitive to China's growth outlook and commodity prices. The yen was little changed, with traders awaiting direction from the PCE data.
The PCE report, due at 8:30 a.m. ET, is the next scheduled catalyst for rate expectations and the dollar's path. A print above consensus would test the soft-landing narrative that has supported risk assets, while a miss could trigger a reversal in the dollar's rally.
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