Aerial view of Mt. Fuji, Tokyo Tower and modern skyscrapers in Tokyo on a sunny day.
Yongyuan | E+ | Getty Images
Asia-Pacific markets rose Friday as investors look toward the Bank of Japan decision coming out later in the day.
The decision could see rates raised to 0.75% — the highest since 1995 — with data from LSEG showing an 86.4% probability of a hike by the Bank of Japan.
A rate hike will likely strengthen the yen against the greenback and contain inflation, which has run above the BOJ’s target for 44 straight months.
Japan’s consumer inflation rate dropped to 2.9% in November, government data showed Friday. Core inflation, which strips out prices of fresh food, remained unchanged from 3% in October, and came in line with Reuters-polled economists’ average estimate.
Australia’s S&P/ASX 200 climbed 0.52% in early trade.
Japan’s Nikkei 225 advanced 0.56%, while the Topix was 0.57% higher. South Korea’s Kospi jumped 0.68% and the small-cap Kosdaq added 0.53%.
Hong Kong’s Hang Seng index futures were at 25,675, higher than the HSI’s last close of 25,498.13.
Overnight in the U.S., the S&P 500 snapped a four-day slide Thursday, boosted by lighter-than-expected inflation data that brightened the outlook for lower interest rates in 2026 and blowout guidance from chipmaker Micron Technology.
The broad market index jumped 0.79% to settle at 6,774.76, while the Nasdaq Composite advanced 1.38% to 23,006.36. The Dow Jones Industrial Average gained 65.88 points, or 0.14%, to end the day at 47,951.85.
— CNBC’s Lim Hui Jie, Sean Conlon and Pia Singh contributed to this story.