Asian shares continued their rally on Friday, benefiting from the Federal Reserve's substantial rate cut, while the yen faced volatility as traders anticipated Japan's upcoming monetary policy decision.
Meanwhile, China's central bank held its benchmark lending rates unchanged, disappointing hopes for immediate economic support, which led to a dip in Chinese blue-chip stocks.
Japan’s Nikkei surged 1.9%, partially driven by a weaker yen, contributing to a weekly rise of 3.4%.
Ahead of the Bank of Japan’s meeting, the yen was under pressure, falling 1% for the week to 142.28 per U.S. dollar. Japan’s core inflation rose for the fourth consecutive month, reinforcing the case for potential policy tightening, though the BOJ is expected to keep rates steady at 0.25% for now.
In the U.S., stock markets surged as the Fed’s rate cut fueled optimism about sustained economic growth.
Wall Street saw the S&P 500 and Dow Jones reach record highs, while the Nasdaq jumped 2.5%, led by tech shares.
The U.S. dollar remained near one-year lows, while the British pound rose to $1.3281, its highest since March 2022. Meanwhile, short-dated U.S. Treasuries held steady near two-year highs.
Commodities also saw gains. Gold hovered near record levels at $2,587.75 per ounce, and oil prices are set for a second straight weekly rise. Brent crude futures dipped slightly by 0.3% to $74.69 a barrel but remain up 4.2% for the week.
