Asian markets rally

Asia-Pacific markets opened higher on Friday, led by Japan’s Nikkei 225, following Wall Street’s strong gains after the Federal Reserve’s significant rate cut. The Bank of Japan kept its benchmark interest rate unchanged at 0.25%—the highest since 2008—after a two-day policy meeting.

Japan’s core consumer prices index increased 2.8% year on year, aligning with estimates, compared to 2.7% the previous month. Excluding fresh food and energy, inflation was 2%, slightly above the previous month’s 1.9%. This marks the final economic data point before the BOJ’s expected decision to maintain interest rates at 0.25%. The yen strengthened 0.30% against the dollar, reaching 142.20.

China also held steady on its lending rates, keeping the one-year loan prime rate at 3.35% and the five-year LPR at 3.85%. Japan’s Nikkei 225 jumped 1.87%, while the Topix rose 1.48%. Hong Kong’s Hang Seng gained 1.45%, and South Korea’s Kospi added 0.87%, with the Kosdaq rising 1.28%. Mainland China’s CSI 300 dipped 0.27%.