Asian markets surged on Friday after a lower‑than‑expected US inflation reading revived hopes for another interest‑rate cut next month. The US inflation rate fell to its lowest level since July, missing forecasts and bolstering expectations of further easing. This positive outlook was reinforced by chip maker Micron Technology’s strong earnings report, which helped allay concerns about a looming tech bubble.
In Japan, the Bank of BoJ raised its borrowing costs to a three‑decade high after data showed prices rising above its target rate. The yen initially slipped against the dollar but later recovered, while yields on 10‑year Japanese government bonds climbed amid worries about Prime Minister Sanae Takaichi’s budget discipline. The yen’s weakness is expected to persist, with analysts forecasting it will strengthen as the US Federal Reserve cuts rates and the BoJ continues to tighten.
The upbeat momentum in Asia was mirrored on Wall Street, where major indexes rose after recent pressure. Tokyo’s Nikkei 225 gained 1.0% to 49,507.21, Hong Kong’s Hang Seng rose 0.8% to 25,690.53, and Shanghai’s Composite advanced 0.4% to 3,890.45. Other Asian markets—including Sydney, Seoul, Singapore, Taipei, Mumbai, Bangkok, and Wellington—also posted gains, while London and Paris fell at the open and Frankfurt remained flat. The dollar‑yen rate moved to 156.68 yen from 155.63 the day before, and the euro‑dollar slipped to $1.1720 from $1.1721.
These market trends and economic developments are likely to shape investor decisions in the coming weeks. As the global economy grapples with inflation, interest‑rate dynamics, and technological advances, market watchers will continue to monitor the situation for potential shifts and opportunities.
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