Asian stock markets saw mostly positive movement on Friday, buoyed by a strong performance on Wall Street and declining oil prices. This comes amid ongoing reactions to the U.S. Federal Reserve’s recent monetary policy decisions.
In the early trading hours, Japan’s Nikkei 225 rose by 0.8%, South Korea’s Kospi made a notable gain of 2.1%, while Hong Kong’s Hang Seng and the Shanghai Composite each climbed nearly 0.8%. Australia’s S&P/ASX 200 showed a modest increase of 0.1%, reflecting cautious optimism among investors in the region.
Wall Street’s previous session contributed to the upbeat sentiment as the S&P 500 advanced by 1.1%, the Dow Jones Industrial Average rose by 0.6%, and the Nasdaq Composite saw a significant jump of 1.7%. These gains were partly attributed to a decline in oil prices, with Brent crude decreasing by 0.68% to $104.11 per barrel and U.S. crude falling by 0.54% to $101.36 per barrel.
The financial markets are digesting the Federal Reserve’s recent decision to raise its benchmark interest rate by 0.25 percentage points. The Fed has signaled the possibility of another rate hike later this year, as it continues efforts to steer inflation toward its 2% target.
In addition to stock movements, the yield on the 10-year U.S. Treasury note fell to 4.93% from 5.01%, alleviating some pressure on the equities market. Currency trading also saw the U.S. dollar strengthen slightly against the Japanese yen, reaching 156.15 yen, while the euro remained steady at $1.1480.