Mainland Chinese blue chips were 0.5% higher, Hang Seng added 1%, Nikkei rose 0.25%, Australia’s stock benchmark jumped 1%, and Taiwan’s benchmark added 0.7%
Asian stocks rose broadly on Friday, tracking Wall Street’s overnight rise to record highs, as investors digested the U.S. Fed’s message for careful interest rate cuts even with expectations for big fiscal spending under incoming President Donald Trump.
U.S. Treasury yields dropped to new lows in Asian hours, keeping the dollar under pressure after its biggest decline versus major peers in over six weeks on Thursday.
Asia-Pacific stocks were on track for a rally this week, after quickly recovering from a decline on U.S. election night, which spurred worries of debilitating trade tariffs, not least in China.
However, optimism over stimulus from Beijing buoyed sentiment as the week-long National People’s Congress (NPC) Standing Committee meeting concludes on Friday with officials holding a briefing.
Mainland Chinese blue chips were 0.5% higher as of 0155 GMT, after a 3% surge on Thursday. Hong Kong’s Hang Seng added 1%.
Nikkei rose 0.25%, up 3.7% for the week.
Australia’s stock benchmark jumped 1%, and Taiwan’s benchmark added 0.7%.
Global stocks are headed for a 3.3% weekly gain, and stand at a record high.
Trump returned to the White House on Tuesday with Republicans taking back the Senate and potentially increasing their House majority, although votes are still being counted.
Investor expectations that Trump would lower corporate taxes and loosen regulations sent all three major U.S. indexes to record highs on Wednesday, and the S&P 500 and Nasdaq extended those highs on Thursday, with Fed Chair Jerome Powell indicating continued, patient policy easing. The Dow closed flat.
We think that the economy, and we think our policies, are both in a very good place, a very good place, Powell said in his post-meeting news conference.
We don’t know what the timing and substance of any policy changes will be, Powell said, referring to the incoming Trump administration, whose tariffs and immigration policies are expected by analysts and investors to be inflationary.
