Asian Markets Surge on Tech Rally and Slumping Oil Prices

Asian stock markets surged on Wednesday as robust earnings and renewed appetite for tech propelled Wall Street to record highs. The Nikkei rose 3.5% in Japan, while South Korea's market jumped 4.3%. The MSCI index of Asia-Pacific shares outside Japan gained 2.3%, and Chinese blue chips increased by 1.5%. Tech stocks were the driving force behind the rally, with AI and satellite group SpaceX shedding 7.5% after hours due to concerns about its cash flow.

AMD fell 8.8% after hours as its earnings beat expectations but still disappointed investors. The company's heavy investment in compute power has raised borrowing costs for the sector, a recurring concern for AI stocks. Chris Weston, head of research at Pepperstone, noted that SpaceX needs additional capital over the medium to longer term.

The market sentiment was also supported by an ongoing slide in oil prices. Brent crude fell 0.6% to $78.85 a barrel, while U.S. crude dropped 0.9% to $75.09. This decrease provided some relief from inflation fears and boosted bonds globally, with 10-year Treasury yields now at 4.603%, down from last week's high of 4.747%. The probability of a September rate hike from the Federal Reserve was sharply pared to 57% from 67%.