Asia stocks rise on optimism over China's policy relief, with Japan trimming gains after rate hike

From Investing.com: 2025-01-23 22:00:45

Most Asian stocks rose on Friday, following record highs on Wall Street and optimism over China’s policy relief. Japanese markets saw gains, but trimmed some after the Bank of Japan hiked rates and warned about the economy. U.S. stock index futures were steady with focus on the Federal Reserve meeting next week.

Japanese stocks rose initially but trimmed gains after the Bank of Japan raised interest rates. The central bank forecasted higher inflation and slower growth, signaling more rate hikes in the future. Strong inflation data supported bets on a rate hike, reflecting confidence in the local economy.

Chinese stocks also rose, with Hong Kong leading the pack. The rally was driven by major chipmaking stocks amid optimism over a potential Sino-U.S. trade deal. Markets rebounded on policy support from Beijing, with Chinese markets set to close for the Lunar New Year holiday. Key economic data for January is due next week.

Broader Asian markets were mostly positive, with gains in chipmaking stocks boosting South Korea’s index. Singapore’s index fell slightly as the Monetary Authority of Singapore eased monetary policy. Futures for India’s index pointed to a flat open near seven-month lows.



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