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By Gregor Stuart Hunter SINGAPORE (Reuters) -Asian stocks limped towards the end of the week on a shaky footing on Friday as declines on Wall Street lingered into early trading, while commodity markets took a breather after their recent charge higher. Regional markets remain on track for one of their best years in a decade, firmly outstripping gains for U.S. counterparts as President Donald Trump's package of economic policies and tariffs prompts a surge of orders across the region to meet booming demand for AI-linked technology hardware. The U.S. trading session marked the point where a number of "well-subscribed, high-momentum trades" including gold, silver, crypto, and much of the S&P 500 "finally showed signs of exhaustion," said Chris Weston, head of research at Pepperstone Group Ltd in Melbourne. MSCI's broadest index of Asia-Pacific shares outside Japan fluctuated between gains and losses, last down 0.2% as its gains for the week hung in the balance, after U.S. stocks ended the previous session with mild declines. Shares in Hong Kong were down the most, off 1.1%, while the Australian market slid 0.1% against a backdrop of volatile commodity markets. In South Korea, stocks surged 1.7%, extending gains for the region's best-performing index. U.S. stock futures found a bottom in Asia, with corporate earnings season for the third quarter due to kick off on Wall Street next week. S&P 500 e-minis were up 0.2%, while the U.S. dollar index, which measures the greenback's strength against a basket of six currencies, held steady near a two-month high at 99.37. The yield on the benchmark 10-year Treasury bond fell to 4.1384% compared with its U.S. close of 4.148% on Thursday. Traders' expectations that the Federal Reserve will ease policy at its meeting on October 29 remain solid, with Fed funds futures pricing a 94.1% probability of a 25-basis-point rate cut, according to the CME Group's FedWatch tool. TAKAICHI WALKS A TIGHTROPE The Nikkei stock index tumbled 0.7%, taking a step back after sharp gains this week including on Thursday when it swept to an all-time closing high. Data earlier in the day showed wholesale prices rose 2.7% in the year to September, in a sign of persistent cost pressure that will keep markets braced for a possible rate hike by the Bank of Japan when it meets on October 30. The dollar slid 0.1% against the yen to 152.96, around the weakest level for the Japanese currency since February, after the new ruling party leader Sanae Takaichi said on Thursday that the country's central bank is responsible for setting monetary policy but that any decision it makes must align with the government's goal. Traders say her pledge to reassert government sway over the central bank may face a reality check from a weak yen and domestic political considerations, however. "The market expects the Japanese government to adopt expansionary fiscal policies," analysts from Bank of America wrote in a research report. "However, considerable uncertainty remains about the specifics of the policies up for debate, as well as the extent of the fiscal expansion." COMMODITIES IN FOCUS Gold edged down, extending declines after snapping a four-day winning streak on Thursday, shortly after breaching the $4,000 mark for the first time and with evidence of the ebullience spilling across into other precious metals. Spot gold was last trading down 0.1% at $3,971.93 per ounce, while silver was up 1% at $49.62, retesting the $50 mark after crossing above the boundary for the first time on Thursday. [GOL/] Chinese stocks tumbled following declines for ETFs tracking large-caps on Wall Street overnight after Beijing expanded its rare earths export controls on Thursday, tightening control over the sector ahead of talks between Presidents Trump and Xi Jinping. In energy markets, Brent crude edged up 0.1% to $65.27 per barrel, after Israel's government ratified a ceasefire with the Palestinian militant group Hamas on Friday, clearing the way to suspend hostilities in Gaza within 24 hours and free Israeli hostages held there shortly after that. (Reporting by Gregor Stuart HunterEditing by Shri Navaratnam)

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By Ankur Banerjee SINGAPORE (Reuters) -The yen was set for its steepest weekly drop in a year on Friday, as investors fretted about fast-receding chances of another rate hike this year while comments from Japan's likely next prime minister failed to soothe market jitters. The yen was last steady at 153.12 per U.S. dollar in early Asian hours, hovering near its weakest level since mid-February. The Japanese currency is on pace for a nearly 4% drop in the week, its biggest decline since early October last year. The yen's drastic drop has been centred on worries that the Bank of Japan may not hike interest rates again this year after fiscal dove Sanae Takaichi's surprise victory, stoking worries of Japanese authorities needing to step in. Takaichi, on course to become Japan's first female prime minister, said on Thursday that the country's central bank is responsible for setting monetary policy but that any decision it makes must align with the government's goal. She also said she did not want to trigger excessive declines in the yen but her comments did little to lift the currency. "Markets are still of the view that Takaichi's leadership will make it politically difficult for the Bank of Japan to raise interest rates," said Carol Kong, currency strategist at Commonwealth Bank of Australia. "Finance Minister Kato's recent comments on the FX markets indicate imminent FX intervention is unlikely which may encourage markets to further sell the yen." Traders are currently pricing about 45% chance of a rate hike from the BOJ in the December meeting and are only fully pricing in a 25 basis point hike in March. FRENCH DRAMA DRAGS EURO The euro last fetched $1.15635, anchored near two-month lows hit on Thursday and on pace for a 1.5% drop for the week, its sharpest decline in 11 months as the political turmoil in France weighed on the single currency. French President Emmanuel Macron is searching for his sixth prime minister in under two years, hoping his next pick can steer a budget through a legislature riven by crisis. The political paralysis has made it deeply challenging to pass a belt-tightening budget, demanded by investors increasingly worried by France's yawning deficit. "In France, turmoil following the resignation of Prime Minister Lecornu has undermined EUR sentiment," said Kieran Williams, head of Asia FX at InTouch Capital Markets. "Volatility remains elevated across FX markets as traders readjust positions in response to shifting central bank expectations and political risks." That has left the dollar upbeat, with the dollar index, which measures the U.S. currency against six other units, at 99.4, near a two-month high. The index is on course for a 1.7% gain, its biggest jump in a year. "The recent dollar rally has gone against market positioning and prompted a partial covering of USD shorts," said Chris Weston, head of research at Pepperstone. "There remains a high degree of scepticism that the USD can materially push through 100, a level in the dollar index that was quickly reversed in May," he said in a note. With the U.S. shutdown continuing and little to no economic data for investors to parse through for clues on the path the Federal Reserve is likely to take, markets are keeping an eye on comments from policymakers. Traders are pricing in a 95% chance that the Federal Reserve cuts rates by 25 bps at its October meeting, while the odds of an additional cut in December have dropped to 80%, from 90%, in the past week, according to the CME Group's FedWatch Tool. The influential New York Federal Reserve President John Williams signalled on Thursday he would be comfortable with cutting interest rates again, despite some policymakers' qualms about rising inflation that suggest such a decision would not be easily made. In other currencies, the Australian dollar was 0.11% firmer at $0.6563, while sterling was at $1.33044, rooted near the two-month low it hit on Thursday. The New Zealand dollar was at $0.57475, hovering near its lowest in six months after the central bank slashed its benchmark rate by an aggressive 50 bps on Wednesday, as policymakers signalled concerns about the frail state of the economy and kept the door open for further easing. (Reporting by Ankur Banerjee in Singapore; Editing by Jacqueline Wong)

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By Nora Eckert DETROIT (Reuters) -Ford Motor is walking back a program that would have allowed dealers to offer a $7,500 tax credit on EV leases after the federal subsidy expired September 30, the company said on Thursday. "Ford will not claim the EV tax credit but will maintain the competitive lease payments we have in the market today," a spokesperson said.  The decision follows a similar move from General Motors on Wednesday. While automakers including Hyundai and Stellantis have offered cash off incentives to bridge the gap for buyers, Ford and GM took a different approach.  The in-house lending arms at these two automakers planned to initiate the purchase of EVs in dealers’ inventory, and the companies would apply for the $7,500 credit on those cars and then roll that money into EV lease terms for customers. For customers who want to purchase an electric vehicle, Ford Credit continues to offer 0 percent financing for 72 months and other incentives, a spokesperson said. GM opted to kill the program after concerns were raised about it by Republican Senator Bernie Moreno of Ohio, a former car dealer who is active in auto policy, a person briefed on the matter told Reuters. It is unclear why Ford canceled its program.  Ford and GM developed their strategies after discussions with officials at the Internal Revenue Service, Reuters previously reported. Some auto executives, including Ford CEO Jim Farley, have warned that EV sales will drop significantly in the absence of the credit. Other automotive leaders, such as the CEO of Hyundai Motor North America, have affirmed that the electric vehicle market is more resilient than that.   (Reporting by Nora Eckert; Editing by Chizu Nomiyama )

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