Micron's Earnings Boost Asian Tech Stocks Amid Treasury Yields Surge

Treasury yields surged in September as bond prices tumbled due to soaring energy costs and AI-driven economic growth, leaving investors bracing for a period of higher interest rates. The yield on benchmark US 10-year Treasury notes hit 5.306%, the highest level since mid-June 2007.

Micron's blockbuster earnings report signaled strong demand for AI memory chips, with financial commitments under long-term supply agreements at $32 billion, up from $22 billion in June. This boost helped push tech-heavy stock markets in Asia higher, with Japan's Nikkei jumping over 3% and South Korea's KOSPI reversing earlier losses to gain 1.7%. Taiwan's stock benchmark was 0.8% higher.

The US Federal Reserve may still hike interest rates later this month, despite softer-than-expected US inflation that lowered the odds of a rate increase. New York Fed President John Williams said there is 'no urgency' for further action, but investors remain cautious due to elevated Treasury yields and concerns about the cost-of-capital concern.

Asian technology stocks rose on Thursday, driven by Micron's strong earnings report, while US bonds struggled with their sharpest quarterly selloff in more than three decades. The high-stakes earnings from Micron, a key supplier to AI bellwether Nvidia, validated the strong demand for AI memory chips.