Asian Stocks Rise as Oil Retreat Eases Inflation Concerns

The Asian stock market rose on Friday as oil prices retreated, easing inflation concerns and providing a stronger backdrop for technology stocks. The pullback in oil continued to ease pressure on bond markets, with US Treasury yields falling nine basis points overnight to 4.93%.

Oil prices extended losses for the third session, with Brent crude falling 1.2% to $103.56 a barrel. However, the Middle East remains a key supply risk, with Saudi Arabia seeking to restore about half its East-West pipeline capacity within days after it was damaged in drone strikes.

The Bank of Japan's interest-rate decision is also in focus, with markets expecting the central bank to raise its policy rate to 1.25% from 1%. The BOJ's Governor Kazuo Ueda is due to speak afterward, and investors are focused not only on whether the BOJ hikes but also on how Ueda signals the pace of further tightening.

Japan's core consumer inflation slowed to 1.7% in August from 1.8% in July, its first decline in four months, with government subsidies helping contain utility costs. Asian chipmakers extended their rebound, with Taiwan Semiconductor Manufacturing Co (TSM) and Samsung Electronics rising 4.5% and 2.8%, respectively.