Asian stocks rise as oil retreats ahead of BOJ rate hike
Oil prices fell to $US103.77 per barrel as Asian stocks gained on easing inflation concerns.
Asian stocks climbed on Friday as falling oil prices eased inflation fears, with investors bracing for the Bank of Japan to raise interest rates to a 31-year high. Brent crude futures dropped 1 per cent despite ongoing Middle East tensions between Saudi Arabia and Yemen's Houthis, which had kept prices above $US100 a barrel.
Japan's Nikkei index rose 0.9 per cent, while South Korea's KOSPI surged 2 per cent after a Wall Street rally led by beaten-down tech stocks. US Treasury yields steadied after a brutal selloff that pushed the 10-year bond beyond 5 per cent, its highest since 2007.
The Federal Reserve raised rates for the first time in three years this week and flagged more increases ahead.
- $US103.77 per barrel
- Brent crude price
- 0.9 per cent
- Japan Nikkei gain
- 2.0 per cent
- South Korea KOSPI gain
- 4.936 per cent
- US 10-year Treasury yield
Why it mattersInterest rate decisions by central banks shape market movements globally. Investors watch policy shifts from the US Federal Reserve, Bank of Japan and other central banks for signals about inflation control and future economic direction.
AustraliaAustralian superannuation funds hold significant Asia-Pacific and US assets; higher rates reduce bond values and may pressure share markets where many Australians have invested.
✓ Claims checked against the source and corrected before publish. checked 6 d ago
