Fed's Rate Cuts Propel Global Markets to Record Highs

World stocks neared record highs due to the Federal Reserve's significant interest rate cut. The yen eased after remarks from the Bank of Japan Governor, while the dollar strengthened. Market movements are also influenced by Chinese economic data and expectations for further stimulus. European and Wall Street stocks showed mixed results.

Global stocks soared near record highs on Friday, buoyed by a substantial interest rate cut from the U.S. Federal Reserve earlier this week. This development also came as the yen eased following remarks by Bank of Japan Governor Kazuo Ueda, tempering expectations for imminent rate hikes.

The dollar surged 1.2% against the yen, hitting 144.29, its strongest in two weeks, after Ueda's comments. Earlier, it had dipped to 141.74 following the Bank of Japan's decision to keep rates steady. Following the Federal Reserve's 50 basis point rate cut, the dollar initially suffered losses but regained stability after Chair Jerome Powell assured investors that the reduction aimed to support a resilient economy rather than respond to labor market weaknesses.

European stocks dropped 0.8%, led by automakers, after Mercedes-Benz lowered its profit margin target due to weak Chinese demand. Meanwhile, Chinese authorities kept benchmark lending rates unchanged, signifying limited impacts from recent economic measures. Market watchers are now eyeing further U.S. economic data and additional Federal Reserve moves for future market direction.

(With inputs from agencies.)