Global Stocks Mixed as Yen Falls Amid Central Bank Rate Hikes

Global stock markets were mixed on Friday as investors digested the latest moves from central banks to combat inflation. Despite the Bank of Japan's interest rate hike, the yen fell against the dollar.

The Dow Jones finished modestly lower at 51,682.64, while the Nasdaq Composite edged higher. European bourses retreated, with Frankfurt, London, and Paris all losing around 1.5 percent.

Analysts said investors welcomed the Federal Reserve's decision to raise rates as a sign it is serious about countering inflation. However, they noted that yields continue to move higher at elevated levels, making bonds more attractive to investors.

The Bank of Japan raised interest rates to a three-decade high, but this was met with skepticism in markets, which feared the pace of hikes might be slower than expected. The decision was carried by a 7-2 majority vote.