Asian Stocks Rise as Wall Street Rally and Lower Oil Prices Boost Confidence
Asian stocks mostly rose on Friday as investors took cues from a strong rally on Wall Street and lower oil prices. Japan's Nikkei 225 index gained 0.8% to 64,662.11 in early trading, while South Korea's Kospi jumped 2.1% to 6,856.35.
The Bank of Japan ended its two-day monetary policy meeting, which saw interest rates remaining unchanged. Meanwhile, falling oil prices and easing pressure from the bond market helped Wall Street reverse many of its losses from the prior day.
The S&P 500 index rose 1.1% for just its second increase in nine days, with the Dow Jones Industrial Average adding 316 points or 0.6%, and the Nasdaq composite climbing 1.7%. The price for a barrel of Brent crude oil slid from nearly $110 to $104.11 due to concerns that the war with Iran will limit oil exports.
The recent drop in oil prices helped pull yields lower in the bond market, removing some pressure on stocks. However, the Federal Reserve's decision to raise interest rates may still have a negative impact on markets.