This content was published on

January 16, 2026 – 02:19

(Bloomberg) — Asian stocks are set for their longest weekly winning streak since May, with a regional gauge of technology shares climbing to a record as investors step up bets on artificial intelligence.

The MSCI Asia Pacific Index is poised for a fourth week of gains, during which time it had risen more than 7.5%. The gauge rose 0.2% Friday to set yet another all-time high, with Taiwan Semiconductor Manufacturing Co. climbing to its highest ever after earnings. South Korea, a bellwether for artificial intelligence, also climbed to a record, extending gains to an 11th straight session.

Asian gains came after US equities recovered from their first back-to-back losses of the year, as investors regained confidence in the tech sector. Equity-index futures for the S&P 500 and the Nasdaq 100 rose 0.2%. Elsewhere oil steadied after its biggest decline since June, while gold and silver edged lower.

Stocks are extending their gains as outlook from TSMC renewed confidence in the durability of a key bull-market driver even as small caps climbed on signs of economic strength. The earnings also helped allay concerns over the sustainability of data-center spending amid a rotation out of richly priced technology shares.

“Technology stocks had looked vulnerable in recent weeks as investors rotated away from megacap names and into more cyclical areas of the market,” said Fawad Razaqzada at Forex.com. “TSMC’s update, though, appears to have stabilized that ‘rotation’ rather than reversed it outright.”

A run of stronger-than-expected economic data has helped shape a growing sense that conditions are improving, with investors chasing riskier parts of the market that typically benefit in that scenario.

In other corners of the market, Treasuries were little changed in Asia after falling in US trading when jobless claims unexpectedly dropped to the lowest since November.

The 10-year’s yield is headed for a fifth straight week of minimal change, rivaling its longest stretch of inertia in the past two decades.

The trend — a function primarily of expected stability in US monetary policy — is stoking anxiety among bond-market investors because previous instances of constricted yield ranges have been followed by selloffs.

Traders will also be watching the rising tensions in the Middle East after Fox News reported that at least one US aircraft carrier is moving to the region. US military planners are preparing a range of options depending on the actions of the Iranian government in the next few days, Fox reported.

Separately, the US and Taiwan agreed to a long-sought trade pact that would lower tariffs on goods from the self-governed island to 15% and see Taiwanese semiconductor companies increase financing for American operations by $500 billion.

In Asia, focus is also on Japan, where central bank officials are closely watching the yen’s potential influence on inflation, with possible implications for future rate hikes after a likely “hold” decision next week.

Traders are also parsing capital flows in and out of Japan Friday as the yen inches toward the 160-per-dollar mark. Official intervention to strengthen the currency is a topic of discussion among market participants as the yen trades near a one-and-a-half year low.

“We have obviously previously seen Japan intervene above the 160 level and as we get closer to that, I think that becomes a possibility,” said Divya Devesh, co-head of FX research for Asean and South Asia at Standard Chartered. “It is an unstable equilibrium,” he said of Japan’s macro backdrop.

Meanwhile, several Federal Reserve officials speaking Thursday signaled a willingness to pause rate cuts at their upcoming policy meeting, citing a labor market that appears to be stabilizing and ongoing inflation pressures.

Corporate Highlights:

Goldman Sachs Group Inc. blew through expectations for equities-trading revenue, posting an all-time Wall Street record of $4.31 billion in the final three months of last year. Morgan Stanley’s debt bankers increased revenue 93% in the fourth quarter, by far the biggest jump on Wall Street and capping a record year for that business. BlackRock Inc. pulled in $342 billion of total client cash in the fourth quarter, pushing the firm to a record $14 trillion of assets as it integrates a string of recent acquisitions to become a force in private markets. Goldman Sachs is set to raise $16 billion with the largest investment-grade bond sale ever from a Wall Street bank. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.2% as of 10:18 a.m. Tokyo time Japan’s Topix fell 0.4% Australia’s S&P/ASX 200 rose 0.1% Hong Kong’s Hang Seng fell 0.3% The Shanghai Composite fell 0.3% Euro Stoxx 50 futures fell 0.4% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1606 The Japanese yen was little changed at 158.51 per dollar The offshore yuan was little changed at 6.9645 per dollar Cryptocurrencies

Bitcoin was little changed at $95,489.45 Ether rose 0.3% to $3,306.23 Bonds

The yield on 10-year Treasuries was little changed at 4.17% Japan’s 10-year yield advanced 1.5 basis points to 2.175% Australia’s 10-year yield advanced three basis points to 4.71% Commodities

West Texas Intermediate crude rose 0.2% to $59.30 a barrel Spot gold fell 0.3% to $4,602.47 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Ruth Carson.

©2026 Bloomberg L.P.