MSCI’s Asia Pacific index gained 0.3%, with South Korea’s benchmark leading regional advances. Hang Seng futures climbed 1.1%, the Kospi rose 1.44%, the Nikkei 225 added 0.76% and the Topix gained 0.32%.
India’s GIFT Nifty index indicated a muted start and hinted that markets may open in green for the day’s trade.
The Japanese yen extended its rally, adding 0.1% to trade at 155.58 per dollar after posting its biggest one-day advance in more than a month on Thursday.
The currency had strengthened around 2% in the previous session, reversing weeks of steady decline, and touched a high of 155.30 before settling near 155.85.
Traders raised their bets on a Bank of Japan rate hike and stayed alert to the possibility of official intervention to support the currency further according to a Bloomberg report. The turnaround gathered pace on speculation that Japan’s largest pension fund could lift its allocation target for domestic bonds.
The offshore yuan held steady at 6.7175 per dollar.
US Federal Reserve Governor Christopher Waller triggered the shift in sentiment when he said he would back holding interest rates steady provided inflation kept easing towards the central bank’s 2% target. He said at a Reuters event that he could support keeping rates on hold “if there is continued progress” on inflation but would consider a hike if price pressures picked up again.
The personal consumption expenditures price index, the Fed’s preferred inflation gauge, stood at 3.7% in July, down from 4.1% in May. Waller’s remarks lifted the S&P 500 to its strongest session in a month and drove the Nasdaq 100 up 1.2%.
Meanwhile, oil prices rose after Iran claimed to have carried out fresh strikes on American bases in the region, adding to supply concerns stemming from the broader conflict.
Brent crude pushed towards $96 a barrel, up more than 7% on the week, while the West Texas Intermediate crude climbed 0.6% to $91.86 a barrel.
