Asian shares saw gains on Friday following a record high in U.S. stocks and the Bank of Japan's decision to raise its key lending rate. U.S. futures dipped slightly, and oil prices decreased after President Donald Trump urged oil-producing nations to lower crude prices, alleviating concerns about inflation. Despite Trump's mention of potentially increasing tariffs on goods from China and other countries, markets remained relatively unaffected.
The Nikkei 225 index in Tokyo rose by 0.3% to 40,074.87 after the Bank of Japan raised its benchmark rate to approximately 0.5% from 0.25%, marking the highest level since 2008. This move signifies a shift from a prolonged period of very low interest rates aimed at stimulating borrowing and spending. Prior to this decision, government data revealed a core inflation rate of 3% year-on-year in December, surpassing the central bank's 2% target.
Meanwhile, the Hang Seng in Hong Kong climbed 1.8% to 20,057.46, the Shanghai Composite index increased by 0.7% to 3,253.79, the Kospi in South Korea gained 0.6% to 2,530.56, and Australia's S&P/ASX 200 advanced 0.4% to 8,408.30.
In the U.S., the S&P 500 reached a new high at 6,118.71, with the Dow Jones Industrial Average rising by 0.9% to 44,565.07 and the Nasdaq composite adding 0.2% to 20,053.68. These gains occurred amidst stable movements in Treasury yields, which have previously impacted the stock market significantly.
President Trump's comments on potential tariffs briefly affected Treasury yields, with the 10-year yield rising to 4.64% before settling back. Despite a slight increase in U.S. workers applying for unemployment benefits, the job market remains robust, indicating strong economic performance. Traders do not anticipate a rate cut by the Federal Reserve at the upcoming meeting, which would be the first meeting without a rate reduction since September.
In the cryptocurrency market, bitcoin prices dipped below $103,000 after reaching a record high above $109,000 earlier in the week. Additionally, U.S. benchmark crude oil dropped to $74.49 per barrel, and Brent crude fell to $78.16 per barrel. The euro also saw an increase in value against the dollar.
