Asian Stocks Rally as Oil Prices Decline Amid Interest Rate Hikes

The Asian stock market rallied on Thursday as oil prices declined and the Bank of Japan raised its benchmark interest rate to a 31-year high.

The Nikkei 225 in Japan gained 1.9% to 65,332.57 after the Bank of Japan increased the benchmark interest rate from 1.0% to 1.25%. This move was anticipated following the Federal Reserve's key rate hike this week.

The yen weakened against the US dollar, trading at 157.11 Japanese yen compared to 155.95 yen previously. The euro also rose in value, costing $1.1487 per unit, up from $1.1480.

Oil prices fell as concerns about war with Iran eased, causing Brent crude oil to drop by 0.94% to $103.83 a barrel. This decline helped reduce pressure on the bond market and stocks.