Tech-heavy markets in Japan and South Korea rose sharply after Micron said its customers had committed US$22 billion for its memory chips, while Qualcomm anticipates $15 billion in sales from its data center business by 2029.

MSCI's broadest index of Asia-Pacific shares outside Japan was 1.3 percent higher in early trading. Japan's Nikkei rose over 2 percent while South Korea's KOSPI, the world's best-performing stock market in 2026, gained 5.5 percent.

Futures for S&P 500 rose 0.5 percent while Nasdaq futures jumped 1.8 percent.

"Tech stocks received a massively needed shot in the arm after the bell when Micron delivered its earnings report," said Tony Sycamore, market analyst at IG, noting that data was suggesting broader cooling in positioning that could challenge tech's momentum in the near term.

Investor concern that valuations for AI-related companies have become stretched following years of gains has weighed on markets in recent days, leading to volatile sessions.

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Analysts though remain sceptical of a long sustained rally in AI stocks as those valuation worries linger.

"It's a positive from Micron," said Nick Twidale, chief market strategist at ATFX Global in Sydney, who expects a strong move higher on the back of the earnings.

"But I'm not sure how long the euphoria will last across the rest of the sector [...] I think valuation concerns will continue to weigh on sentiment moving forward," he said.

Tankers exit Strait of Hormuz

Oil prices extended their decline as stranded tankers exited the Strait of Hormuz following an initial accord to end the US-Israeli war with Iran, easing supply concerns.

Brent crude futures dipped 0.5 percent to $73.34 a barrel, inching closer to pre-war levels. US West Texas Intermediate fell 0.38 percent to $70.07 a barrel.

Easing oil prices may help reduce some inflation pressure but elevated prices are likely to keep the US Federal Reserve under pressure to raise interest rates with investors pricing in at least one rate increase this year.

Thursday's PCE inflation report is expected to show core prices rose 0.3 percent in May, putting the annual rate at 3.4 percent. Headline inflation is forecast at 0.5 percent for the month and 4.1 percent year-over-year.

Rising expectations of a rate hike have boosted the dollar, putting the Japanese yen near its lowest in 40 years and on the brink of more intervention from Tokyo.

The yen was last at 161.73 per US dollar, not far from the two-year low it hit last week. A break below 161.96 would take yen to its lowest level since 1986.

The dollar index, which measures the US unit against a basket of currencies, was at 101.6 after reaching 101.80 in the previous session, its highest since May 12, 2025.

The strengthening dollar has weighed on gold, which slid below $4,000 an ounce for the first time in 2026. Spot gold last fetched $3,990 per ounce, hovering near its lowest since November.

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