By Micah Jonah
January 16, 2026
Asian shares climbed on Friday as optimism around artificial intelligence returned, while the U.S. dollar remained near a six-week high after stronger-than-expected economic data reduced bets on Federal Reserve rate cuts.
MSCI’s broadest index of Asia-Pacific shares outside Japan hit a record 761.53 points, lifted by robust earnings from Taiwanese chipmaker TSMC, which boosted confidence in AI-related stocks. Technology-heavy indices in Taiwan and South Korea also reached all-time highs.
The U.S. and Taiwan recently agreed on a trade deal that lowers tariffs on key semiconductor exports, encourages investment in U.S. technology, raising potential tensions with China.
Wall Street futures were higher in the Asian session, with Nasdaq up 0.4% and S&P 500 up 0.3%, driven by gains in technology and financial stocks. Japan’s Nikkei fell 0.14%, weighed down by a stronger yen, which gained 0.2% to 158.36 per dollar after remarks from Japanese Finance Minister Satsuki Katayama on potential intervention to curb currency volatility.
The dollar remained firm near a six-week peak, supported by data – showing U.S. unemployment claims fell unexpectedly. The euro traded near a 1½-month low at $1.1606, while sterling was steady at $1.3385.
Oil prices continued to decline, with Brent crude down 0.19% at $63.64 per barrel and U.S. crude down 0.15% at $59.10 per barrel, as U.S. President Trump eased military intervention concerns in Iran. Spot gold slipped 0.06% to $4,611.49 an ounce.
