Tokyo climbed more than 2%, Hong Kong was up more than 1%, with Sydney, Seoul, Taipei and Manila also rising
Asian markets built Friday on the latest global rally after a big US interest rate cut this week, while the yen rose after the Bank of Japan decided against another hike.
Traders have been put in a bullish mood by the Fed’s decision to go big on its first cut since the start of the pandemic – opting for 50 bps instead of 25 – and pledging more would come.
There had been fears the move could signal officials were concerned about the economy and were behind the curve in easing policy, but data Thursday showing jobless claims at their lowest since May suggested it was heading for a soft landing, rather than recession.
After a muted initial reaction to the Fed cut, Wall Street jumped Thursday, with the S&P 500 and Dow hitting new records and the Nasdaq adding more than 2%.
Asia continued the run, extending the previous day’s gains.
Tokyo climbed more than 2%, matching Thursday’s performance, thanks to a softer yen, while Hong Kong was up more than 1%, with Sydney, Seoul, Taipei and Manila also rising.
Shanghai slipped after China’s central bank decided against reducing interest rates despite ongoing concerns about the economy.
Singapore and Jakarta also declined.
With the Fed out the way, attention turned to the BoJ as it wound up its policy meeting by keeping borrowing costs on hold.
The move had been widely expected after a hike at its previous gathering, but investors will now be poring over the bank’s statement and comments from Governor Kazuo Ueda hoping for guidance on its near-term plans.
The BoJ began to move away from its long-running policy of ultra-low rates in March – the first increase in 17 years – but a second increase in July sent shockwaves through markets.
