Asian Stocks Advance for Second Day as Chip Rally Extends; MSCI Asia Pacific Up 1.3%

Bloomberg reported that stocks in Asia climbed for a second day as chipmakers at the heart of the AI boom extended their rebound, offsetting concerns over rising oil prices after renewed escalation in the US-Iran conflict.MSCI's Asia Pacific equities gauge rose 1.3%, extending Tuesday's biggest one-day gain in a month. South Korea's KOSPI jumped 5% as the unwinding of leveraged bets that drove the benchmark nearly 30% below its peak appeared to be nearing its end. Stocks in Japan and Taiwan also advanced.Brent rose 1% to about $92 a barrel after U.S. President Donald Trump minimized the prospect of immediate talks with Iran. Gold gained 1.3% to almost $4,130 an ounce. Treasury yields held at their highest levels in about two months, reigniting concerns that inflationary pressures could prompt the Federal Reserve to raise interest rates.eToro analyst Bret Kenwell said the burden of proof has changed, with investors wanting growth and guidance strong enough to justify elevated valuations. The Philadelphia Semiconductor Index rallied over 5% on Tuesday after briefly entering a bear market last week.KCM Trade chief market analyst Tim Waterer wrote that the market is learning to live with higher oil prices, with solid earnings helping divert focus from advancing oil prices.Trump announced plans to impose 100% tariffs on generic drugs imported to the US beginning August 2028. The yen steadied after sliding past 163 per dollar for the first time since 1986, testing Japanese authorities' resolve to intervene.LPL Financial's Adam Turnquist said the long-term AI backdrop appears intact, with the recent correction more consistent with a healthy reset than a fundamental breakdown. Goldman Sachs strategists said earnings growth should continue to support stocks in the second half.Super Micro Computer shares rose about 15% in extended trading after reporting a record backlog on new orders exceeding $60 billion. Moonshot AI plans August talks for a final fundraising round ahead of a Hong Kong listing, targeting a valuation of up to $50 billion.