Oil Dips Send Asian Stocks Soaring Ahead of BOJ Rate Hike

Asian stocks rose on Friday as oil prices dipped ahead of an expected rate hike from the Bank of Japan. The MSCI's broadest index of Asia-Pacific shares outside Japan increased by 0.55%.

The Nikkei was up 0.9%, while South Korea's KOSPI surged 2%. The move follows a rally on Wall Street, led by beaten-down tech stocks, and the dip in oil prices to $103.77 per barrel due to hopes of alternate ways for oil supply from the Middle East to reach markets.

The US dollar held its ground as investors contended with global policymakers ramping up efforts to rein in inflation. The Bank of England warned that it may have to hike rates if the Middle East war drags on, and the Federal Reserve raised rates for the first time in three years.

The yen softened ahead of the BOJ policy decision, expected to raise interest rates to a 31-year high. Analysts say the key is not just whether the BOJ hikes but also how it hikes and Governor Ueda's communication on the path forward.