Asian markets climb as oil eases and yen waits for BOJ decision
Asian equities rose on Friday while the yen slipped, as oil prices fell and investors eyed the Bank of Japan’s upcoming rate hike.
On Friday, Asian share indexes posted gains, with Japan’s one outlet up roughly 0.9% and South Korea’s KOSPI jumping about 2%, as Brent crude fell 1% to $103.77 a barrel despite ongoing Middle-East tensions. The U.S. dollar held steady and 10-year Treasury yields eased after briefly breaching 5% earlier in the week. The yen weakened to 156.23 per dollar ahead of the Bank of Japan’s anticipated rate increase, which would set rates at a 31-year peak.
Analysts from Pepperstone, MUFG and Commonwealth Bank of Australia highlighted that the size and messaging of the hike, as well as Governor Ueda’s outlook, will shape market volatility. Meanwhile, the Bank of England, Federal Reserve and European Central Bank have all signaled further tightening as inflation concerns persist.
Why it matters
The moves signal how global central banks and oil prices are influencing Asian markets and the yen ahead of major policy decisions.
How this story developed
- Sep 6 Treasury expands long-term debt buyback to $6 billion amid volatile markets
- Sep 9 The buyback size was increased from $4 billion to $6 billion.
- Sep 16 The Bank of England is expected to keep its policy rate at 3.75% on Thursday, but a sharp rise in gas and oil prices is prompting talk of a possible increase later this year.
- Sep 17 The Bank of England kept the Bank Rate at 3.75% after a 6‑3 vote.
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