Asian Stocks Rise, Led by Record-High Wall Street, as China’s Policy Relief Boosts Markets
Most Asian stocks rose on Friday, tracking record highs on Wall Street and building on optimism over more policy relief in China. Japanese markets, however, trimmed some gains after the Bank of Japan hiked interest rates and issued a hawkish warning.
The Bank of Japan raised interest rates as expected, but forecast higher inflation and slower growth in the coming years, sparking concerns about future rate hikes. Despite this, the Japanese markets rose 0.4% and 0.6%, respectively, with analysts noting that the rate hike was largely priced in.
Chinese stocks, on the other hand, continued to benefit from government support, with the government asking state-run insurers and financial institutions to deploy more capital into local equities. The Shanghai and Shenzhen composite indexes rose 0.7% and 0.4%, respectively, as a result. Hong Kong’s Hang Seng index was a standout performer, rallying 1.7% on gains in major chipmaking stocks, as investors bet that recent US export controls would boost local demand for the sector.
Regional markets took a cue from Wall Street, which hit a record high after President Donald Trump announced a call for lower interest rates from the Federal Reserve. US stock index futures steadied in Asian trade, with attention turning to the next week’s Federal Reserve meeting, at which a rate change is not expected.
Other notable market moves included a 0.5% gain in Australia’s S&P/ASX 200, despite weaker-than-expected business activity in January, and an 0.8% rise in South Korea’s KOSPI 200 on optimism over a $500 billion artificial intelligence project in the US. Singapore’s Straits Times Index, however, fell slightly after the country’s monetary authority loosened monetary policy, citing slower-than-expected growth and declining inflation. India’s Nifty 50 futures, meanwhile, pointed to a flat open, with the index trading near seven-month lows.
