Asian Markets Rise on Micron Earnings as Chip Stocks Rally in Tokyo
Asian markets rose led by Japanese chip stocks following robust earnings from Micron, while Chinese and Hong Kong exchanges were closed for national holidays.
Asian stock markets traded mixed to higher on Wednesday, driven by strong earnings reports from memory chip maker Micron, while Chinese and Hong Kong exchanges remained closed for national holidays. Japan's Nikkei index climbed 2.4%, and South Korea's Kospi gained 1%.
Micron Earnings and Market Reaction
Micron reported its fourth fiscal quarter with net income surging to $37.7 billion compared to $3.2 billion in the same quarter last year. Adjusted earnings per share reached $33.42, outperforming analysts' expectations of $31.61. Revenue totaled $54.23 billion, surpassing the forecasted $51.07 billion. As the sole US manufacturer of High Bandwidth Memory (HBM), Micron's DRAM sales skyrocketed by 343% year-over-year to $39.8 billion.
Despite the stellar financial results and an upbeat outlook for the upcoming quarter, Micron shares edged up by only 0.5% in after-hours trading following an astronomical surge of 536% over the past year.
Asian Markets and Chip Sector Rally
Chip-equipment suppliers led the rally on the Tokyo Stock Exchange. Lasertec jumped 8.3%, Advantest climbed 7.8%, and Taiyo Yuden surged 9.2% on strong demand for artificial intelligence server components. Meanwhile, Japanese banking stocks faced downward pressure, with Mitsubishi UFJ Financial Group dropping 2.8%, Mizuho Financial sliding 1.9%, and Sumitomo Mitsui Financial weakening 2.2%.
