Asian Markets Bask in US Rate Cut Afterglow, Eyes on Japan's Monetary Policy

Asian shares rallied on Friday following a significant US interest rate cut, while Japan's yen remained volatile ahead of the BOJ's monetary policy decision. Chinese shares, however, declined as the central bank held its lending rates steady. Wall Street and commodities saw positive movements as well.

Asian shares extended their rally on Friday, reveling in the afterglow of an outsized interest rate cut in the United States. Traders are anxiously awaiting a monetary policy decision in Japan, where the yen was jittery.

China's central bank held its benchmark lending rates steady, disappointing those hoping for immediate policy support for its ailing economy. Despite this, MSCI's broadest index of Asia-Pacific shares outside Japan increased by 0.5%, hitting a two-month high and heading for a weekly gain of 2.4%. The Nikkei surged 1.9%, supported by a weaker yen, and is up 3.4% for the week.

The BOJ is expected to maintain its short-term rate at 0.25%, with focus on potential hints from Governor Kazuo Ueda about future rate hikes. Meanwhile, Wall Street marked record highs, commodities maintained their gains, and the dollar hovered near one-year lows against major currencies.

(With inputs from agencies.)