Asian stocks jump as BOJ hike bets rise, fueling regional rally
Asian stocks jump as BOJ hike bets rise, fueling regional rally
asian markets rebound as Wall Street tech gains push risk appetite higher and traders brace for a Bank of Japan rate hike
SYDNEY: Asian share markets rebounded on Friday as a tech-led rally on Wall Street lifted sentiment and traders looked to a likely Bank of Japan rate hike. The market consensus points to the BOJ lifting the policy rate to 0.75% later in the session, with investors pricing in limited further tightening in 2026. A softer yen would feed through to inflation dynamics, and analysts cautioned that movement remains sensitive to the outlook for global growth.
Meanwhile, U.S. inflation cooled to 2.7% in the latest data, though analysts warned the drop could be distorted by the government shutdown. Fed expectations shifted slightly, with markets pricing in a small chance of a January rate cut and a higher likelihood of moves by March. Across Europe and Britain, central banks signaled a more cautious stance on future rate cuts, shaping currency and bond markets.
In Tokyo, Japan's core CPI rose 3.0% year on year in November, unchanged from October, reinforcing the sense that policy normalization is gradual. The Nikkei rose about 0.6%, while MSCI's Asia-Pacific excluding Japan gained around 0.2%. South Korea added around 1.2% on strength from Micron Technology results. U.S. 10-year Treasury yields hovered around 4.13%, while Japan's 10-year yield sat near 1.98%.
