Asian stocks mixed after bumper TSMC results

Taipei stocks surged two percent after the government agreed with Washington to boost Taiwanese chipmaking investments in the United States, which will cut tariffs.

Taiwan will remain the world's "most important" producer of the advanced chips that power AI tools, the island's Economic Affairs Minister Kung Ming-hsin said.

Some market-watchers fear the bubble of excitement around AI, which has pushed global markets to record highs, could burst and cause a stock rout.

But TSMC, the world's biggest contract maker of chips, announced Thursday a forecast-busting net profit for the fourth quarter -- seen as a sign of sustained global demand for AI technology.

The company's shares jumped 4.4 percent on Wall Street, and rose three percent Friday in Taipei.

Analyst Gavin Friend said TSMC's strong annual capital expenditure forecast in particular would reassure those concerned over how long the AI boom can last.

"Increasingly, investors have been questioning the extent of the capex drive into data centres," he told the National Australia Bank's Morning Call podcast.

"I think the most important thing -- and they (TSMC) pretty much exceeded on everything -- was the upbeat outlook on things like capex, expected to be significantly higher over the next three years," he said.

"That's given AI and tech stocks a much-needed shot in the arm."

- Oil steady -

The news spurred US markets, with the tech-rich Nasdaq piling on more than one percent early in the session behind large gains among leading chip firms.

But later in the day there was "kind of a roll-back in the megacap stock and semiconductors", said Briefing.com analyst Patrick O'Hare.

This weakening came after US Commerce Secretary Howard Lutnick indicated that semiconductor companies that do not build in the United States could face 100 percent tariffs.

In Asia, traders were watching Tokyo ahead of a week that brings a Bank of Japan policy decision and Prime Minister Sanae Takaichi's expected snap election announcement.

The yen has softened against the dollar on reports that the Bank of Japan will keep its monetary policy unchanged, said Kyle Rodda, senior market analyst at Capital.com.

That "adds to downside pressures on the currency, with a looming election, called to gain a mandate for very expansionary fiscal policy, also a critical headwind", Rodda said.

Traders are alert to the possibility of a government intervention to prop up the yen's value, Rodda added.

Tokyo and Shanghai closed 0.3 percent down, while Hong Kong, Manila and Kuala Lumpur also posted losses.

Sydney, Wellington, Mumbai, Jakarta, Bangkok and Singapore were all up, and tech highflier Seoul gained 0.9 percent.

Oil prices continued to steady as Washington distanced itself from military intervention in Iran.

The United States on Thursday said Iran halted 800 executions of protesters under pressure from Trump, after Gulf allies appeared to pull him back from military action over Tehran's deadly crackdown on demonstrations.

- Key figures at around 0700 GMT -

Tokyo - Nikkei 225: DOWN 0.3 percent at 53,936.17 (close)

Hong Kong - Hang Seng Index: DOWN 0.6 percent at 26,776.06

Shanghai - Composite: DOWN 0.3 percent at 4,101.91 (close)

Euro/dollar: UP at $1.1610 from $1.1605 on Thursday

Pound/dollar: UP at $1.3382 from $1.3377

Dollar/yen: DOWN at 158.34 yen from 158.63 yen

Euro/pound: FLAT at 86.75 pence

West Texas Intermediate: UP 0.3 percent at $59.36 per barrel

Brent North Sea Crude: UP 0.2 percent at $63.86 per barrel

New York - Dow: UP 0.6 percent at 49,442.44 (close) 

London - FTSE 100: UP 0.5 percent at 10,238.94 (close)

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