Asia Chip Stocks Gain Amid Rising Oil Prices and Geopolitical Tensions
Asian chip stocks continued their recent gains on sustained investor interest in artificial intelligence. The Kospi in South Korea rose 0.5% as SK Hynix, the nation's chip giant, edged higher. This followed a 1.3% gain in the Philadelphia Semiconductor Index, known as the SOX.
The MSCI Asia-Pacific Index of shares also increased by 0.4%. Meanwhile, Brent crude rose 1.5% to $99.37 per barrel after another round of strikes on Middle East energy infrastructure, including US attacks near the key export hub of Kharg Island.
Energy prices have prompted traders to price in a more than 50% chance of a US Federal Reserve interest rate increase in September. Investors are watching to see whether the latest escalation further disrupts supplies and complicates inflation and interest rate outlook.
Chris Larkin at E*Trade from Morgan Stanley said, 'With geopolitical tensions and oil prices on the rise, the markets may find it difficult to focus on much beyond the inflation discussion.'