MARKETS: The artificial intelligence rally continues, the yen’s decline stopped with intervention talks

Asian stock markets were fairly neutral on Friday. In Japan and Hong Kong, we saw great price declines, in mainland China, the indices remained close to the previous day’s closing levels, and in the techno-oriented Taiwan and South Korean stock exchanges, the prices were clearly rising.

Taiwanese chipmaker giant TSMC published a strong result yesterday, where, among other things, it reported on surprisingly tough growth guidelines and increasing investments from an already high level. Strong belief in the continuation of the artificial intelligence boom was again the market theme of the day yesterday, supported by TSMC’s outlook. AI stocks rose yesterday in Europe and the US, and the momentum continued in Asia on Friday. TSMC’s stock was up more than three percent on the Taiwan stock exchange on Friday.

“Technology companies had looked vulnerable in recent weeks as investors moved away from large-caps and into more cyclical areas of the market. However, TSMC’s update appears to have stabilized rather than completely reversed,” Forex.comin market analyst Fawad Razaqzada commented to Bloomberg.

On the foreign exchange market, the yen had strengthened by 0.2 percent against the dollar, euro and pound. The interrelationships of the other major currencies remained largely unchanged.

Japan’s Finance Minister Satsuki Katayama said he was concerned about the yen’s recent weakness and that authorities were ready to support the yen if needed. It boosted the yen on Friday after the weakness of the previous days.

Prime Minister of Japan Sanae Takaichin was said to be planning to dissolve Japan’s parliament next week. The new elections should be held on February 8. Takaichi is seeking public approval and support for his revitalizing budget plans in snap elections. If the position of Takaichi’s party in the parliament is further strengthened in the elections, the probability of a generous fiscal policy will also be strengthened.

The Bank of Japan has been raising interest rates more slowly than expected from ultra-low levels in recent years, which has weighed on the yen despite monetary policy tightening in Japan and looser in the rest of the world.

You got 1.161 dollars for the euro and 158.38 yen for the dollar.

Bloomberg strategists estimate that the yen’s dollar exchange rate will forcefully fall above 160 again if Takaichi calls new elections and strengthens his majority in parliament.

The Euro Stoxx 50 future was down 0.3 percent in anticipation of a rosy stock market opening for Europe.