Asian Stocks Surge on Benign Inflation and AI Theme

Asian stocks rose on Friday, poised for their strongest week in two months as benign inflation data dented expectations of an imminent U.S. rate hike.

The U.S. threatened to ramp up economic pressure on Iran, including extending a naval blockade, but markets have so far shrugged off the lack of progress in ending the war in the Middle East.

Instead, investors are focusing on the broad AI theme following strong earnings that placated worries about massive AI spending.

The yen was at 159.36 per U.S. dollar, hovering close to the crucial 160 level that traders believe could trigger another bout of yen buying from Tokyo.