The Nikkei 225 index surged 2.1% to 37,935.58 after Japan’s key inflation data in August accelerated for a fourth successive month
Asian stocks soared on Friday with Japan’s Nikkei leading gains after Wall Street rose to records following the Fed’s big cut to interest rates.
U.S. futures and oil prices were down.
The BoJ ended a two-day monetary policy meeting and announced it would keep its benchmark rate unchanged at 0.25%.
In Tokyo, the Nikkei 225 index surged 2.1% to 37,935.58 after Japan’s key inflation data in August accelerated for a fourth successive month. The core CPI gained 2.8% year-on-year in August, exceeding the central bank’s 2% target and leaving room for further rate hikes.
Markets are closely watching for hints on the pace of future rate hikes from Bank of Japan Gov. Kazuo Ueda.
For the BoJ, given current economic conditions and recent central bank rhetoric, further policy adjustments are not expected until later this year or early 2025, Anderson Alves of ActivTrades said in a commentary.
The U.S. dollar declined to 142.32 Japanese yen from 142.62 yen. The euro gained to $1.1166 from $1.1161.
China refrained from further monetary stimulus as the central bank left key lending rates unchanged on Friday. The one-year LPR, the benchmark for most corporate and household loans, stays at 3.45%, and the five-year rate, a reference for property mortgages, was held at 3.85%.
The Hang Seng in Hong Kong gained 1.1% to 18,206.68 while the Shanghai Composite index declined 0.2% to 2,729.69.
Elsewhere, Australia’s S&P/ASX 200 added 0.2% to 8,209.70. South Korea’s Kospi rose 0.8% to 2,600.29.
On Thursday, the S&P 500 climbed 1.7% to 5,713.64 and topped its last all-time high set in July. The DJIA jumped 1.3% to 42,025.19, and the Nasdaq composite led the market with a 2.5% rise to 18,013.98.
