* Blowout earnings help lift mood on AI

* Rising rate hike bets buoy dollar, weigh on other

currencies

* Yen near 40-year lows as intervention risks loom

By Ankur Banerjee

SINGAPORE, June 25 (Reuters) - Asian equities surged on

Thursday after strong earnings and forecasts from chip giants

Micron and Qualcomm ( QCOM ) 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 ( QCOM ) 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 rose 0.5% while Nasdaq futures

jumped 1.8%.

"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.

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

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.