Asian Shares Surge After US Stocks Hit Record, Japan Raises Interest Rate
Asian markets experienced gains on Friday following a record-breaking performance by US stocks and a rate hike by the Bank of Japan.
Key Market Movements:
* Nikkei 225 (Japan): +0.3% to 40,074.87
* Hang Seng (Hong Kong): +1.8% to 20,057.46
* Shanghai Composite (China): +0.7% to 3,253.79
* Kospi (South Korea): +0.6% to 2,530.56
* S&P/ASX 200 (Australia): +0.4% to 8,408.30
BoJ Raises Interest Rate:
The Bank of Japan raised its benchmark interest rate to 0.5% from 0.25%, as expected. This is the highest level since 2008, signaling a shift away from prolonged low interest rates intended to stimulate economic growth.
Inflation Concerns Ease:
US President Donald Trump's call for oil-producing countries to lower crude prices eased concerns about inflation. However, Trump's comments about imposing higher tariffs on products from China and other countries elicited little market reaction.
US Markets Surge:
On Thursday, the S&P 500 closed at 6,118.71, surpassing its previous record set last month. The Dow Jones Industrial Average gained 0.9% to 44,565.07, while the Nasdaq Composite added 0.2% to 20,053.68.
Treasury Yields Stable:
Treasury yields remained relatively steady despite recent volatility, indicating calmed market sentiment.
Fed Rate Cut Expectations:
Data from CME Group suggests that traders do not anticipate a rate cut at the upcoming Federal Reserve meeting next week.
Commodities and Currency:
* Bitcoin fell below $103,000
* US crude oil futures lost 13 cents to $74.49 per barrel
* Euro gained against the US dollar to $1.0449