Asia-Pacific markets experienced a positive shift on Friday, with Japan’s Nikkei 225 leading the way after a significant rally on Wall Street, which followed the Federal Reserve’s substantial rate cut. The Bank of Japan (BOJ) concluded a two-day meeting by keeping its benchmark interest rate steady at around 0.25%, the highest level since 2008. This decision comes as Japan’s core consumer price index rose by 2.8% year on year, aligning with Reuters estimates, compared to a 2.7% increase in the previous month. When excluding fresh food and energy, inflation was reported at 2%, slightly up from 1.9% previously.
In currency markets, the Japanese yen strengthened by 0.30% against the U.S. dollar, trading at 142.20. Meanwhile, China also opted to maintain its key lending rates, with the one-year loan prime rate at 3.35% and the five-year LPR at 3.85%, rates that influence both corporate and household loans as well as mortgage benchmarks.
On the stock front, Japan’s Nikkei 225 surged by 1.38%, while the broader Topix index increased by 0.94%. Hong Kong’s Hang Seng index gained 0.94%, although mainland China’s CSI 300 saw a slight decline of 0.54%. South Korea’s Kospi rose by 0.63%, and the small-cap Kosdaq experienced a boost of 1.08%. Australia’s S&P/ASX 200 climbed by 0.1%.
In the United States, all three major indexes concluded the trading session higher. The Dow Jones Industrial Average increased by 1.26%, closing at 42,025.19, thereby crossing the 42,000 threshold for the first time. The S&P 500 advanced by 1.7% to end at 5,713.64, marking a notable moment as it topped 5,700 for the first time. The Nasdaq Composite outperformed, surging by 2.51% to finish at 18,013.98.
As the week progresses, the three major averages are on track for weekly gains, with the S&P 500 up nearly 1.6% through Thursday’s close. The Dow is up by 1.5% this week, while the Nasdaq has shown the strongest performance with a 1.9% advance, reflecting positive market sentiment following the Fed’s rate decisions and ongoing global economic developments.
