SINGAPORE, Feb 15 Reuters Asian equities rose on Thursday, powered by chip stocks, with the Nikkei breaching a new 34year peak, while the dollar took a breather near a threemonth high as markets assess when the Federal Reserve is likely to start its easing cycle.

MSCI39;s broadest index of AsiaPacific shares outside Japan rose 0.7, with the IT index surging nearly 3. Taiwan stocks soared to a record high, with chipmaker TSMC up nearly 8.

Japan39;s Nikkei closed 1.2 higher, climbing as high as 38,188.74 during the session, its firmest since January 1990, inching closer towards its record high last seen in December 1989.

European bourses look set for a strong open, with Eurostoxx 50 futures up 0.40, German DAX futures up 0.29 and FTSE futures 0.35 higher.

Investor expectations of early and deep interest rate cuts by the Fed have been besieged by a slew of data that has underscored the resiliency of the U.S. economy and labour market, with data this week showing persistent inflation.

Data on Tuesday showed consumer prices rose more than expected as rental housing costs jumped.

Traders are now pricing in an 82 chance of a cut in June, the CME FedWatch tool showed, further pushing back the starting point of the U.S. central bank39;s easing cycle. Markets at the end of 2023 had priced in rate cuts starting as early as March.

Investors now anticipate 97 basis points of cuts in the year, closer to the 75 bps the Fed had forecast in December.

Central bankers everywhere…