Recently I aquired an International Domain Name: Tapé dotcom. ('tapé' is French for 'typed', it is also a last name)

The Punycode, which is what you see in the adress bar depending on the browser type is: XN--TAP-DMA dotcom. Some browsers do display 'Tapé dotcom' however.

How do search engines deal with these types of domains as far as indexing and SEO wise? Do they read XN--TAP-DMA or tapé in the domainname? And as a result would I have the advantage of having the keyword as it is in the domainname instead of the punycode?

When it was parked at the registrar the ads showing were tape (scotch tape) or tap (TAP airlines) related. Obviously when I would develop a site on this I would like to have the advantage of Tapé in the domainname.