Asian stocks advanced on Friday as the artificial intelligence boom regained momentum, while the dollar held near a six-week high after upbeat U.S. economic data left traders trimming bets on Federal Reserve rate cuts. Oil prices fell alongside safe-havens gold and silver after U.S. President Donald Trump adopted a wait-and-see posture towards the unrest in Iran, having earlier threatened intervention.
## Record High for Asia-Pacific Shares
MSCI’s broadest index of Asia-Pacific shares outside Japan scaled a record high of 761.53 points, as stellar results from Taiwanese chipmaker TSMC breathed new life into the AI trade. Technology-heavy indexes in Taiwan and South Korea also notched all-time peaks.
## US and Taiwan Clinch Trade Deal
The U.S. and Taiwan clinched a trade deal on Thursday that cuts tariffs on many of the semiconductor powerhouse’s exports, directs new investments towards the U.S. technology industry and risks infuriating China. Overnight, gains in technology and financial stocks sent Wall Street higher, with Nasdaq futures up 0.4% in the Asian session. S&P 500 futures similarly tacked on 0.3%.
## Traders Watch for Yen Intervention
The yen stole the spotlight in the currency market after Japanese Finance Minister Satsuki Katayama said on Friday Tokyo would not rule out any options to counter excessive foreign exchange volatility, including coordinated intervention with the U.S. Her comments lifted the yen slightly, with the currency extending gains after a Reuters report that some Bank of Japan policymakers see scope to raise interest rates sooner than markets expect, with April a distinct possibility.
## Dollar Near Six-Week High
The dollar hovered near a six-week high after a slew of upbeat U.S. economic releases, including data that showed the number of Americans filing new applications for unemployment benefits unexpectedly fell last week. The euro languished near a 1-1/2-month low and bought $1.1606, while sterling was little changed at $1.3385. Against a basket of currencies, the dollar stood at 99.34, not far from Thursday’s top of 99.493, its highest since December 2.
## Oil Prices Fall
In the oil market, prices extended their steep fall in the previous session after Trump’s watered-down comments on Iran allayed concerns over potential military action against Tehran and oil supply disruptions. Brent futures were down 0.19% at $63.64 a barrel, having tumbled more than 4% in the previous session. U.S. crude similarly slipped 0.15% to $59.10 per barrel after a 4.6% fall on Thursday.
