On Friday, Japanese and Australian stocks surged to new highs, propelled by reassuring US inflation figures that eased fears of an imminent rate cut. European markets were poised for gains, with futures indicating upward trends.
The Nikkei index soared 1.9%, hitting a fresh peak, while Australia’s resource-heavy shares climbed 0.6% to a record high. Despite a 0.2% increase in MSCI’s Asia-Pacific shares outside Japan, weekly losses persisted at 0.4%. Blue-chip stocks and the Shanghai Composite Index rose on mainland Chinese markets. Hong Kong’s Hang Seng index also rebounded, rising by 0.6%.
The U.S. PCE price index rose by 0.3% in January, which helped the S&P 500 and Nasdaq close at record levels on Wall Street. This kept hopes of a potential June interest rate cut alive, with markets pricing at 82 basis points easing for the year.
European inflation figures from Germany, France, and Spain met expectations, leading to a decline in the euro against the dollar. The yen also weakened against the dollar following contrasting statements from Bank of Japan officials regarding inflation targets.
Brent reached $82.21 per barrel and US crude at $78.47 per barrel. Meanwhile, spot gold prices edged 0.1% higher to $2,044.99.
