Asian Stock Indices & markets jump as TSMC motivates technology advances; weekly declines remain on track.

Many Asian equities rallied on Friday as TSMC’s upbeat, AI-fueled forecast boosted the tech sector. But weakening Chinese stocks coupled with interest rate uncertainties set many exchanges towards a weekly deficit.

The local markets reportedly drew clues from Wall Street, which recovered on Thursday.  Following a string of sharp falls caused by mounting worries about the Fed’s early rate reduction. The Wall Street indices appeared likewise headed towards a down week.

the Japanese Nikkei 225 benchmark remained the top regional performance of today. Climbing 1.6 percent and approaching a 34-year peak. The benchmark index, together with the wider TOPIX, maintained an exception amongst other indexes. Projecting an uptick of 1.3 percent in the week.

35,961.50+495.33  (+1.40%

Stats released on Friday revealed that Japan’s CPI declined as predicted in Dec. Paving the way for a possibly ultra-loose BoJ once it gathers the following week. –

CPI – YoY (Japanese Core Infaltiona)

Latest Update

Jan 18, 2024

Actual:

2.3%

Projected

2.3%

Prior

2.5%

Asian technology increases as TSMC promotes AI consumption.

More general Asian tech equities rose sharply on Friday, following a bullish outlook from Taiwanese Semiconductor Manufacturer Corporation (TW: 2330) the globe’s biggest contractual chip-maker.

The TSMC gained more than 5 percent in Taiwan trading to hit an almost 2-year top.  Following the business stated the company was strategically placed to cash in on the growth in AI research into the next year.

The ASX 200 rose 0.8 percent due to technology area endurance. Whereas the Hang Seng  rose 0.5 percent owing to increases in major technology sectors.

Indian Nifty 50 benchmark indicated to a positive start, with Indian technology firms expected to match international advances.

Asian equities remain headed for weeklong declines on Chinese fears.

The Chinese CSI 300 & Shanghai Composite indices trailed their counterparts for the period. Dropping around 0.5 percent apiece after recovering from record lows in the day before. After poor Q4 growth in the economy numbers, both indices were set to fall for their third consecutive week. – Chinese GDP (YoY)

Updated  Release:

Jan 17, 2024

Yearly 5.2%

Projected

5.3%

Prior

4.9%

Asian FX heading for weeklong distortions, with greenback littel weak amidst early rate-drop concerns.

Several Asian FX assets changed slightly on Friday but remained on track for weeklong distortions,. When the US dollar remained at a month’s peaks on growing reservations that the US central bank will lower rates soon during the year.

Fears of high-for-long interest rates weighed heavily on the yen.  Making it the region’s weakest mover for the week. The yen sank 0.1 percent on today & was expected to drop 2.3 percent during the week.

Statistics released on Friday indicated that Japan’s CPI dropped to its smallest level until June 2022 in December of that year.  Allowing the BoJ to mainly continue their ultra-loose strategy once it resumes the following week.

AUD/USD: +0.03%; USD/SGD: -0.06%; USD/KRW: -0.05%; USD/CNY: 0.00%; DX: -0.08%; DXY: -0.10%.