Wall Street’s rally extended into Asia on Friday as another decline in oil prices eased inflation concerns. MSCI’s gauge of Asian equities climbed 0.8% after the S&P 500 and Nasdaq 100 recorded their strongest gains since early August. US equity futures pointed to further gains, while European shares were set for a slightly weaker open.

The Bank of Japan raised its policy rate by 25 basis points to 1.25% at the end of its two-day meeting, in a move predicted by all economists surveyed by Bloomberg. The decision passed with a 7-2 vote, with board members Toichiro Asada and Ayano Sato dissenting.

The yen weakened following the decision, falling to around 157.10 per dollar. The Nikkei 225 advanced 1.7%. The yen remained a key focus after the BOJ followed the Federal Reserve in raising rates, while the Fed’s hawkish hike earlier this week had pushed the currency lower following its sharp rally earlier this month.

Japan’s inflation slowed for the first time in four months, largely reflecting the effect of government subsidies, in data released ahead of the BOJ decision.

Oil prices continued to decline for a third day as supply concerns eased and traders shifted their attention toward the next round of diplomacy surrounding the US-Iran war. Brent crude fell 1.3% to around $103.50 a barrel.

The broader rate outlook remained in focus across the region. Australia’s central bank is due to decide later this month whether its benchmark interest rate is sufficiently restrictive to contain price pressures and return inflation to target, according to Governor Michele Bullock.

In trade policy, the US is expected to delay announcing new tariffs over allegations of excess manufacturing capacity among trading partners until at least after next week’s planned summit between Presidents Xi Jinping and Donald Trump, according to people familiar with the matter.

Asian technology stocks also advanced, with Samsung Electronics, SK Hynix and other regional chipmakers rallying following Nvidia’s bullish outlook.

Treasury yields remained elevated in Asian trading after the US 10-year yield touched 5.02% following the Federal Reserve decision. Australian and New Zealand government bonds gained, tracking Treasuries.

Gold extended its advance to around $4,360 an ounce after rising almost 2% on Thursday, recovering much of the losses from the previous three sessions. The yuan also climbed to its strongest level against the dollar in more than four years, extending a rally supported by strong Chinese exports and central-bank backing.

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FISG — Interstellar Group