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By Rocky Swift TOKYO (Reuters) -The yen edged lower on Friday, trimming its sharpest weekly gain in more than four months, as traders considered the impact of potential rate increases by the Bank of Japan and a leadership election this weekend. BOJ Governor Kazuo Ueda reiterated that the central bank would continue raising interest rates if the economy and prices move in line with its forecast. Markets are also focused on a Liberal Democratic Party election on Saturday that will determine Japan's next prime minister. The dollar rebounded overnight despite a closure of the U.S. government that has halted the publication of key economic data, including the closely watched monthly jobs report for September that was due to be released on Friday. Canada's currency held near a four-month low on a slide in oil prices. "The government shutdown has not had a major short-term impact, but if anything, underlying pressure remains toward a weaker dollar," said Hirofumi Suzuki, the chief currency strategist at SMBC. "That said, with yen-depreciation pressure likely to linger ahead of this weekend's LDP leadership election, the pair is likely to hover around current levels," he added. The yen slid 0.2% to 147.52 per dollar, still on track for a 1.3% advance this week that would be the biggest since mid-May. The dollar index, which measures the greenback against a basket of key currencies, tacked on 0.1% to 97.895. The euro was little changed at $1.1721. Markets were keeping a close eye on speeches by BOJ officials this week after the central bank's tankan survey on Wednesday showed confidence among big manufacturers improved for the second straight quarter. Governor Ueda said the central bank expects the global economy to resume a moderate recovery path but much will depend on the U.S. economic outlook. Deputy governor Shinichi Uchida said on Thursday that the business mood is improving and corporate profits remain high even as U.S. tariffs weigh on exports.  Ueda's comments "could be used to guide the market further towards a rate hike at the BOJ's next meeting on October 30th," IG Markets analyst Tony Sycamore wrote in a note. In the U.S. overnight, a Chicago Fed report that combines private and available public data estimated the September jobless rate was 4.3%, the same as in August and evidence that a feared rapid rise in unemployment had not yet begun. But details of the report, along with other data, pointed to sluggishness in the labor market. The ADP National Employment report on Wednesday showed private payrolls decreased by 32,000 in September, boosting expectations that the Federal Reserve will cut interest rates two more times this year. Traders see a 25-basis-point cut at the Fed's October meeting as almost certain and are pricing in a 90% probability of an additional cut in December, according to the CME Group’s FedWatch Tool. Dallas Fed President Lorie Logan on Thursday said the central bank appropriately cut rates last month to guard against the risk of a sharp deterioration in the job market, but said that so far the cooling has been gradual and signalled she is not eager to cut rates further. The Canadian dollar weakened to a four-month low against its U.S. counterpart on Thursday as the price of oil fell more than 2% and investors worried about negotiations to renew a U.S.-Mexico-Canada trade agreement. The Canadian currency traded little changed at 1.3962 per U.S. dollar after touching 1.3986 on Thursday, its weakest intraday level since May 16. (Reporting by Rocky SwiftEditing by Shri Navaratnam)

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By Ankur Banerjee SINGAPORE (Reuters) -Asian stocks were poised for solid weekly gains on Friday as rising odds of the Federal Reserve cutting rates in the near-term helped cushion jitters around a U.S. government shutdown that have pushed gold to record highs and weighed on the dollar. Investors have mostly shrugged off the government shutdown, the 15th since 1981, even as it resulted in suspension of scientific research, financial oversight and delayed crucial economic data, including the jobs report on Friday. Part of the reason for the lack of market reaction is because historically shutdowns have had limited impact on economic growth and market performance. Weiheng Chen, global investment strategist at J.P. Morgan Private Bank, said investors appear willing to give Washington time to resolve its disagreements, though a prolonged shutdown may start to move markets. "For now, investors remain more focused on the potential impacts of the Fed’s rate-cutting cycle, trade and immigration policy, economic data, and corporate earnings," Chen said. MSCI's index of Asia-Pacific shares was up 0.14%, just shy of the record high it touched on Thursday. The index was set for an over 2% gain for the week and has risen 23% so far this year. With China and parts of Asia closed for a long holiday, volumes are likely to be thin in the region. Japan's Nikkei was up 0.75% in early trading, not far from the record high it touched last month ahead of the crucial weekend vote that will determine the next prime minister and set the tone for fiscal and monetary policy outlook. Asian markets were taking cues from Wall Street, where all three major indexes closed at record highs buoyed by technology stocks as investor enthusiasm for all things AI remains unchallenged. NO OFFICIAL DATA With no government reports on the labour market to take cues from, investors have turned to alternative data from public and private sources and so far they point to a sluggish U.S. labour market. Blerina Uruci, chief U.S. economist at T. Rowe Price, said the potential delay of critical economic data is a problem for a data-dependent Fed, leaving the central bank reliant on less comprehensive indicators like ADP and jobless claims. "The lack of clarity could fuel short-term volatility and make it harder for markets to position with confidence," Uruci said, noting some investors are already looking to reduce risk as the outlook becomes harder to navigate. Still, markets are becoming more confident of the Fed sticking to its rate cutting path and are almost fully pricing in a 25 basis point rate cut in October. Traders are pricing in 114 bps of easing by the end of 2026. That has left the U.S. dollar under pressure. The dollar index, which measures the U.S. currency against six other units, was steady on the day but on course for a 0.35% weekly decline, the biggest drop since early August. The Japanese yen has been the biggest beneficiary of the dollar weakness this week and is set to clock a 1.5% gain, its biggest weekly gain since mid-May. It was last little changed at 147.34 per U.S. dollar. In commodities, gold was steady at $3,857 a ounce, stuck near the record high it touched on Thursday. The yellow metal is on course for a 2.6% weekly gain, its seventh straight week of gains. Gold, viewed as a safe-haven asset during times of uncertainty, thrives in a low-interest-rate environment. It has risen 47% so far this year.[GOL/] Oil prices, on the other hand, were on track for their steepest weekly decline since late June due to market expectations that the OPEC+ group could hike output further despite oversupply concerns. [O/R] (Reporting by Ankur Banerjee in Singapore; Editing by Sam Holmes)

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(Reuters) -A multibillion-dollar deal to send Nvidia's artificial-intelligence chips to the United Arab Emirates is stuck in neutral nearly five months after it was signed, frustrating CEO Jensen Huang and some senior administration officials, the Wall Street Journal reported on Thursday. (Reporting by Shivani Tanna in Bengaluru; Editing by Alan Barona)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)