Stocks in the Asia-Pacific region extended their gains buoyed by soft landing hopes in the US ahead of the Bank of Japan's key interest rate decision.
Japanese stocks led the advance with the country's rate cut decision due later in the day. Equity futures for Japan, Australia and Hong Kong all climbed on earlier Friday. Kospi was up 1.02% at 2,607, while Nikkei was up 2.03% at 37,872 as of 5:56 a.m.
Japan's central bank is widely expected to hold its benchmark interest rate steady, with rate cut clues for later in the year, according to Bloomberg. The yen edged lower ahead of the decision. The country's inflation print will also come along with the rate decision.
Positive sentiments for the region came after the latest jobs data in the US support the Fed's hopes on soft landing. US weekly jobless claims fell to 2.19 lakh in September which is below the estimated 2.30 lakh.
Meanwhile, traders are also awaiting loan prime rates in China, which is likely to remain unchanged for a second straight month, after a 10-basis point cut in July.
Elsewhere, Bank of England on Thursday said that it will not rush into easing policy while deciding against a second consecutive cut in its key policy rates.
Trade Setup For Sept 20: Nifty Consolidation Likely At 25,300–25,500 After Fed Action
Wall Street ended the day with record highs as traders wagered that the Fed will be able to boost the economic growth after it lowed rates by 50 basis points. The S&P 500 notched its 39th record this year, extending gains to about 20%, according to Bloomberg.
The S&P 500 and Nasdaq Composite climbed 1.70% and 2.51%, respectively. The Dow Jones Industrial Average rose by 1.26%.
Crude oil prices are on track for their biggest weekly advance since February. Brent crude was trading 0.12% lower at $74.79 a barrel as of 5:54 a.m. IST. West Texas Intermediate was up 0.08% at 72.01.
Key Levels
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US Dollar Index at 100.6
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US 10-year bond yield at 3.71%.
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Brent crude down 0.25% at $74.69 per barrel.
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Bitcoin was down 0.42% at $62,778.18
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Gold spot was down 0.10% at $2,612.00.
US Fed Goes Big On Rate Cut To Boost Growth — What Analysts Make Of The Move. Read more on Markets by NDTV Profit.