Asian markets saw a notable increase on Thursday, fueled by U.S. tech giants’ plans for substantial capital expenditures, expected to favor regional chipmakers. The ongoing conflict in the Middle East has also driven oil prices to their highest in six weeks, adding pressure on the global economy.

In particular, earnings reports from Alphabet and Tesla revealed continuing strong investment in AI infrastructure, which anticipates benefiting prominent Asian chip manufacturers. The rising spending on AI is scrutinized for its returns, while South Korea’s KOSPI index rose over 3%, led by companies like SK Hynix and Samsung Electronics.

Meanwhile, concerns over rising oil costs have resurfaced, impacting global markets and elevating inflation worries. This scenario is pressuring short-term U.S. Treasury yields and prompting speculation about potential interest rate hikes by the Federal Reserve to counter inflationary threats.

(With inputs from agencies.)