After Warsh's speech, rate hike expectations cooled, and U.S. stock futures and Asian stocks moved higher.

Fed Chair Kevin Warsh said AI investment is a big boon for the US economy, driving US equity futures higher and extending gains in Asian stocks. Traders pared back Fed hike bets, weakening the dollar. Nasdaq 100 futures rose as much as 0.2% after Warsh's remarks in Bangkok, having earlier fallen 0.5%. The MSCI Asia Pacific equity index gained 1.5%, while South Korea's Kospi rose 3.6%. Although Warsh did not specifically comment on monetary policy or the US economic outlook, the probability of a Fed rate hike in October fell to 15% from more than 25% on Thursday following his remarks. Warsh also said his task force on productivity and jobs will hold field hearings in the San Francisco Bay Area next month. The Bloomberg dollar index fell 0.2%, while gold rose 0.2% to about $4,180 an ounce. "Warsh didn't commit to another hike, so the market is partly unwinding Fed hike wagers," said Charu Chanana, chief investment strategist at Saxo Markets. "Against the backdrop of stronger inflation data, his comment that 'I won't prejudge the meeting' is not helpful for the dollar."