Aug 9 (Reuters) - A look at the day ahead in Asian

markets.

Asia is set for a positive end to a turbulent week on Friday

after a rip-roaring U.S. equity rally on Thursday, although

Chinese inflation could temper any optimism if the data shows

that the world's second largest economy is still in the clutches

of deflation.

Wall Street's resilience was notable given that U.S. bond

yields rose again after yet another poorly received Treasury

auction, this time 30-year notes. That's two sales this week

that have drawn weak demand, with investors only taking down the

paper in return for higher yields.

But the Nasdaq clocked its best day in six months and the

S&P 500 its best day since November 2022. Broader indices in

Asia and tech in particular should grab the baton and run with

it on Friday.

The MSCI Asia ex-Japan index is currently down 1.6% on the

week, China's blue chip CSI300 index down 1.2%, the Hang Seng

tech index down 0.6% and Japan's Nikkei down 3%. Can they muster

a rally strong enough on Friday to close the week in the green?

It would represent a remarkable turnaround, especially in

Japan where currency- and rates-related volatility earlier in

the week triggered some of the biggest stock market moves on

record.

The U.S. tech shakeout that began on July 11 is losing

steam. The broad S&P Information Technology index and 'FANGS'

index of Big Tech shares both fell around 20% in the three weeks

to Aug. 5 but have rebounded as much as 9% from these lows.

U.S. tech got a boost on Thursday from Meta Platforms'

earnings, and tech stocks in Asia could take their cue next week

from Taiwanese chipmaker TSMC's sales figures on Saturday.

TSMC, the world's largest contract chipmaker and major

supplier to Apple and Nvidia, on Saturday gives its latest

monthly sales update. Sales have been falling in recent months -

to T$207.9 billion in June from T$229.6 billion in May, which

was down from T$236 billion in April.

Indeed, Taiwan's exports rose less than expected in July as

weak demand from China offset record orders from the United

States, which underscored the island's essential role as a

supply hub for the booming artificial intelligence (AI)

industry.

Weak demand from China seems par for the course these days,

and continues to keep inflation in check.

Figures on Friday are expected to show the annual rate of

consumer inflation edged up in July to 0.3% from 0.2%, and the

monthly rate climbed to 0.3% from -0.2%. The annual rate of

producer deflation is expected to have accelerated slightly to

-0.9% from -0.8%.

A positive surprise would be welcome - China's economic data

has been consistently undershooting expectations for months.

Here are key developments that could provide more direction

to Asian markets on Friday:

- China inflation (July)

- Indonesia retail sales (June)

- Malaysia industrial production (June)