(Bloomberg) — Asian equities rose, aided by sharp gains in the shares of AI chipmaker Taiwan Semiconductor Manufacturing Co. Treasuries steadied after heavy selling on Thursday, when new signs of vigor in the US economy led traders to trim expectations for rate cuts.
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Shares in Japan climbed, helped along by a weaker yen. Those in China fluctuated while stocks in Australia fell. TSMC jumped as much as 6.3% in opening trade, following a sharp rally Thursday for its US-listed shares driven by strong earnings and an upward revision of its 2024 revenue target.
The chipmaker’s gains helped lift an Asian stocks gauge and placed the benchmark on track for its first daily advance since last week. US futures were flat after the S&P 500 retreated from an intraday record Thursday to end the session little changed.
In Asia, investors will be firmly focusing on China, with gross domestic product data for the third quarter expected to reveal the slowest pace of growth in six quarters. The pace of decline for home prices slowed last month, suggesting that Beijing’s supportive measures are taking effect. Industrial production and retail sales data are also set for release Friday, providing further clarity for investors grappling with the economic support measures unveiled in the prior weeks that have sent Chinese equities whipsawing.
Swaps traders further reduced bets on Federal Reserve rate cuts in the remaining two meetings of the year. Treasuries were steady after a Thursday jump in yields pushed an index of dollar strength higher for a fourth session to a level not seen since early August. Australian and New Zealand yields climbed in early Friday trading, tracking the moves.
The shift in forecasts reflected robust US retail sales in September that exceeded expectations, illustrating resilient consumer spending that continues to power the economy. The data followed a blowout jobs report and a hotter-than-estimated consumer inflation print released earlier this month that only reinforced the view the US is nowhere near a recession.
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