Asian Stocks Rise as AI Optimism Lifts Markets; Dollar Holds Firm Near Six-Week High
Asian equities advanced on Friday as renewed enthusiasm for artificial intelligence boosted investor sentiment. Meanwhile, the dollar held close to a six-week peak following stronger-than-expected U.S. economic data, which prompted traders to scale back expectations of near-term interest rate cuts.
AI Momentum Fuels Regional Gains
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5%, hovering near its record high from the previous session. The surge followed stellar earnings from Taiwanese chipmaker TSMC, which reignited optimism in AI-related stocks. The upbeat mood was further supported by a new U.S.-Taiwan trade deal, which reduces tariffs on Taiwan’s semiconductor exports and encourages investment in U.S. technology industries, despite the likelihood of angering China.
Japan’s Nikkei slipped 0.42% as a stronger yen weighed on exporters. The yen, which had recently touched an 18-month low, strengthened slightly to 158.48 per dollar. Analysts said political uncertainty surrounding a potential snap election could spur additional fiscal stimulus from Prime Minister Sanae Takaichi’s administration.
Wall Street and Currency Movements
Overnight gains in U.S. technology and financial shares drove Wall Street higher, with Nasdaq futures up 0.22% and S&P 500 futures adding 0.15% in Asian trading. The upbeat tone followed data showing that U.S. jobless claims fell unexpectedly last week, highlighting the economy’s resilience.
The dollar index remained steady at 99.36, close to Thursday’s high of 99.49. The euro lingered near a one-and-a-half-month low at $1.1606, while sterling eased 0.06% to $1.3376. Market expectations now suggest a 67% probability that the Federal Reserve will keep interest rates unchanged in April, up from 37% a month earlier, according to the CME FedWatch tool.
Oil and Precious Metals Under Pressure
Oil prices steadied after sharp declines in the previous session. Brent crude edged up 0.11% to $63.83 per barrel, while U.S. crude gained 0.2% to $59.31. Both benchmarks had fallen more than 4% on Thursday after President Donald Trump adopted a wait-and-see approach to unrest in Iran, easing fears of immediate military intervention.
Safe-haven assets weakened as investor risk appetite improved. Gold and silver prices both fell, reflecting a shift towards equities amid optimism about global technology growth.
with inputs from Reuters