Asian equities surged on Thursday after strong earnings and forecasts from chip giants Micron and Qualcomm helped alleviate some concerns over the red-hot AI rally that has pushed global stocks to record highs. Tech-heavy markets in Japan and South Korea rose sharply after Micron said its customers had committed $22 billion for its memory chips, while Qualcomm  anticipates $15 billion in sales from its data centre business by 2029. MSCI's broadest index of Asia-Pacific shares outside Japan was 1.3% higher in early trading. Japan's Nikkei rose over 2% while South Korea's KOSPI, the world's best-performing stock market in 2026, gained 5.5%. Futures for S&P 500 (EScv1) rose 0.5% while Nasdaq futures jumped 1.8%. 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. Analysts though remain sceptical of a long sustained rally in AI stocks as those valuation worries linger. Oil prices extended their decline as stranded tankers exited the Strait of Hormuz following an initial accord to end the U.S.-Israeli war with Iran, easing supply concerns. Brent crude futures dipped 0.5% to $73.34 a barrel, inching closer to pre-war levels. U.S. West Texas Intermediate fell 0.38% to $70.07 a barrel. Easing oil prices may help reduce some inflation pressure but elevated prices are likely to keep the U.S. 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% in May, putting the annual rate at 3.4%. Headline inflation is forecast at 0.5% for the month and 4.1% 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 U.S. 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 U.S. 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.