Asian Equities Surge Amid Crude Price Retreat, BOJ Rate Hike Looms

Asian markets have extended their rally into Friday, following the strongest session on Wall Street in over a month. The S&P 500 climbed 1.1% on Thursday, its biggest gain since early August, while the Nasdaq 100 jumped 1.7%, and semiconductor stocks surged 3.1%. Asian equities also rose, led by South Korea's Kospi index, with Hong Kong's Hang Seng Index advancing 0.9% to 24,834.41.

The advance was driven in part by the retreat of crude oil prices, which have slipped for a third consecutive session to just under $104 a barrel. The pullback came after Saudi Arabia moved to restore roughly half the capacity of its East-West pipeline within days, following its closure last week due to drone strikes attributed to Yemen's Iran-backed Houthi militants.

The Bank of Japan is expected to raise its policy rate by 25 basis points to 1.25% from 1% on Friday, with Governor Kazuo Ueda scheduled to hold a press conference following the decision. While attention may be focused on the rate hike itself, analysts say that the market's reaction will be driven more by the Bank's guidance around further tightening.