Dec 13 (Reuters) - A look at the day ahead in Asian

markets.

Asian markets are set to end the week on the defensive,

pressured by rising U.S. bond yields and a firmer dollar, with

investors ready to reduce risk exposure as they ponder the

cross-currents sweeping through the emerging world.

China's latest pledges - to widen the budget deficit, issue

more debt and loosen monetary policy - have generally been

welcomed, but Brazil's surprisingly aggressive interest rate

hike and promise of more to come has had a more mixed impact.

Chinese and Hong Kong stocks bounced strongly on Thursday,

and barring a fall of 1.4% or more on Friday, blue chip Chinese

stocks will register their third weekly rise in a row, a winning

streak not seen since May.

The yuan fell on the stimulus news, as expected, but not by

much. Indeed, going into Friday's session, the onshore yuan is

set to break a remarkable run of 10 consecutive weekly

declines.

Even less surprising, perhaps, was another leg lower in

Chinese bond yields. The 10-year yield is at record lows and is

on course for its biggest weekly fall since 2020.

Wall Street understandably took a breather on Thursday after

the previous day's somewhat surprising surge. The S&P 500 fell

0.5% and is poised for a modest fall on the week, and the Nasdaq

backed off Wednesday's record high above 20,000.

It's still on course for its fourth consecutive weekly rise

though, and remarkably, it has declined in only two weeks out of

the last 14. The AI-driven bull run in U.S. tech shows every

sign of powering on into the year end with Hong Kong's benchmark

tech index is up 3% for the week.

The wider policy and market sentiment thermometer is also

sending mixed signals. The Swiss National Bank delivered a jumbo

rate cut on Thursday, bringing the zero bound into view and

floating the possibility of negative rates, if they are needed.

The European Central Bank cut rates by a more modest 25 basis

points, as expected, but was more cautious in its guidance. And

hot U.S. producer price inflation pushed up Treasury yields,

while punchy jobless claims data stoked concern about the labor

market.

All in all, a very mixed bag, and investors may well be

relieved that the weekend is near.

Asia's economic calendar on Friday is light. The two main

indicators are India's wholesale inflation for November, which

is expected to ease a bit to 2.2% on an annual basis from 2.36%

in October, and Japan's fourth quarter Tankan survey of business

sentiment.

The Australian dollar and Philippine peso could move on

scheduled speeches from RBA Assistant Governor Sarah Hunter and

Philippine central bank governor Eli Remolona, respectively.

Here are key developments that could provide more direction

to markets on Friday:

- Japan Tankan survey (Q4)

- India wholesale inflation (November)

- New Zealand manufacturing PMI (November)