Asian Stocks Rise Amid Tech Demand Recovery and Falling Oil Prices

Asian stock markets rallied on Wednesday as corporate earnings and technology demand drove gains. The Nikkei index rose 3.0%, while South Korea's KOSPI added 3.4%. The MSCI index of Asian stocks outside Japan gained around 1.5%.

However, not all technology stocks ended higher. AMD shares fell by about 9% after the company reported results exceeding expectations. SpaceX's AI and space technology business dropped approximately 7.5%, reversing part of its earlier rally due to concerns over capital spending consuming cash flow.

Nasdaq futures edged down slightly (-0.1%), while S&P 500 futures rose 0.2% after reaching record highs yesterday. The decline in oil prices supported global bond markets, with the yield on 10-year Treasury notes falling to 4.6187%. Markets also revised the likelihood of a Federal Reserve interest-rate hike in September, with expectations now at around 57%.

Jeff Schmid, president of the Federal Reserve Bank of Kansas City, called for tighter policy to bring inflation back to the 2% target. Chris Weston noted that SpaceX's growth means additional capital will likely be needed over the medium and long term.