Asian stock markets mostly advanced on Friday, buoyed by a robust performance on Wall Street and a dip in oil prices. Japan’s Nikkei 225 increased by 0.8% in early trading, while South Korea’s Kospi saw a significant rise of 2.1%. In Hong Kong, the Hang Seng Index climbed 0.8%, and China’s Shanghai Composite edged up nearly 0.8%. Meanwhile, Australia’s S&P/ASX 200 recorded a modest gain of 0.1%.
The upward momentum in Asia followed a day of broad gains in the U.S. markets. The S&P 500 surged 1.1%, the Dow Jones Industrial Average added 0.6%, and the Nasdaq Composite jumped 1.7%. These gains were partly driven by easing oil prices, with Brent crude dropping 0.68% to $104.11 a barrel and U.S. crude slipping 0.54% to $101.36.
Investors remained attentive to the Federal Reserve’s recent decision to raise its benchmark interest rate by 0.25 percentage points. The Fed also signaled the possibility of another rate hike later this year, aiming to curb inflation towards its 2% target. This decision continues to influence market dynamics.
In the bond market, the yield on the 10-year U.S. Treasury note decreased to 4.93% from 5.01%, providing some relief to equity markets. On the currency front, the U.S. dollar experienced a slight strengthening against the Japanese yen, reaching 156.15 yen, while the euro held steady at $1.1480.