On Friday, Asian stocks displayed a broad uptrend as investors celebrated the Federal Reserve's recent half-percentage point interest rate reduction from Wednesday, while also assessing the policy decisions issued by the Bank of Japan and the People's Bank of China.
In Australia, equities surged, with the benchmark S&P/ASX 200 reaching fresh record highs. The index climbed to 8,246.20 before settling slightly at 8,224.60, reflecting a gain of 32.70 points or 0.4% from the previous close. Meanwhile, the broader All Ordinaries index advanced by 35.40 points or 0.42%, landing at 8,452.40.
Gains in the materials sector were driven by a rebound in commodity prices. Among the notable performers, Bluescope Steel, Seek, Reece Ltd., and Car Group each rose by 3% to 4%. In the pharmaceutical sector, Neuren Pharmaceuticals and Telix Pharmaceuticals saw significant increases of 10.7% and 7.5%, respectively.
Contributing to the uptrend, Wesfarmers, Woodside Petroleum, REA Group, Xero Ltd., Seven Group Holdings, Qantas Airways, Endeavour Group, JB Hi-Fi, QBE Holdings, Harvey Norman Holdings, Lendlease Group, Reliance Worldwide, and Super Retail Group each gained between 1% to 2.5%. Conversely, Orica, Sonic Healthcare, Computershare, Insurance Australia, Brambles, Suncorp Group, and Transurban Group experienced moderate to sharp losses.
Japan's stock market saw a sharp rise, even after retreating from session highs following the Bank of Japan's decision to maintain its key short-term interest rate in the range of 0.25% to 0.1%, as forecasted, following a rate hike in July. According to data from the Ministry of Internal Affairs & Communications, Japan's annual inflation rate escalated to 3% in August, up from 2.8% over the prior three months, marking the highest level since October 2023. On a monthly basis, the CPI increased by 0.5% in August, compared to a 0.2% rise in July. Additionally, Japan's core consumer price index grew by 2.8% on a yearly basis in August, the highest reading since February.
The Nikkei 225 index, which had peaked at 37,993.00 earlier, was up 766 points or 2.06%, standing at 37,886.50. Tokai Carbon and Resonac Holdings surged nearly 9%, while Kawasaki Industries, Tokyo Electron, Taiyo Yuden, Dentsu, Mitsui, Fanuc, Fuji Electric, Sumco, and Fast Retailing gained between 4% to 6%. In financials, Mizuho Financial, Softbank, Mitsubishi UFJ Financial, Sumitomo Mitsui Financial, Citizen Holdings, and Aozora Bank rose by 1% to 3%. The automobile sector also showed strength, with Hino Motors, Honda Motor, Yamaha Motor, and Mazda Motor posting notable gains.
In China, stocks exhibited volatility as the central bank retained its main benchmark lending rates, contrary to expectations of a rate cut. The Shanghai Composite Index dipped by 0.22%. The People's Bank of China (PBOC) announced it would maintain the one-year loan prime rate (LPR) at 3.35% and the five-year LPR at 3.85%.
Hong Kong's market extended its winning streak to six sessions, reaching a 13-week high. The Hang Seng index was up 241.84 points or 1.34%, standing at 18,255.00. The South Korean market also posted notable gains, with its KOSPI index climbing nearly 1%. Prominent gainers in this market included Samsung Electronics, LG Energy Solutions, Kia Corp, Hyundai Motors, and Samsung SDI.
New Zealand and Indonesian markets reflected an upward trend, while markets in Malaysia and Singapore exhibited weakness.