Asian stock markets experienced widespread gains on Friday, buoyed by a robust rally on Wall Street and a decrease in oil prices. In early trading, Japan’s Nikkei 225 increased by 0.8%, and South Korea’s Kospi surged by 2.1%. Similarly, Hong Kong’s Hang Seng and the Shanghai Composite both appreciated by 0.8%, while Australia’s S&P/ASX 200 inched up by 0.1%.
The positive momentum in Asian markets followed a strong performance in U.S. markets the previous day. The S&P 500 saw an increase of 1.1%, the Dow Jones Industrial Average rose by 0.6%, and the Nasdaq Composite climbed by 1.7%. This upswing was partly attributed to falling oil prices, with Brent crude down 0.68% to $104.11 a barrel and U.S. crude decreasing by 0.54% to $101.36.
Another factor influencing market sentiment was the Federal Reserve’s recent decision to raise its benchmark interest rate by 0.25 percentage points, signaling another potential increase later this year as part of efforts to manage inflation towards a 2% target. This monetary policy adjustment influenced the yield on the 10-year U.S. Treasury note, which dropped to 4.93% from 5.01%, providing some relief to equity markets.
In currency markets, the U.S. dollar saw a slight uptick against the Japanese yen, trading at 156.15 yen. Meanwhile, the euro remained steady at $1.1480, reflecting a stable exchange rate amidst the shifting financial landscape.