Asian Shares Follow Wall Street Higher On Rate Cut Optimism

Asian Shares Follow Wall Street Higher On Rate Cut Optimism

Asian stocks followed Wall Street higher on Friday to hit a seven-month high as easier interest rates beckoned on the horizon.

The dollar and Treasury yields were under pressure, helping underpin sentiment ahead of the all-important U.S. jobs data due later in the day that might offer further clues on when the Federal Reserve could cut interest rates.

Gold held steady near a record high while oil prices rose after ending Thursday\'s session lower on China demand concerns.

China\'s Shanghai Composite index rose 0.61 percent to 3,046.02 after Thursday\'s trade data signaled increased demand.

Hong Kong\'s Hang Seng index jumped 0.76 percent to 16,353.39, with tech stocks surging after senior officials announced plans to strengthen China\'s self-reliance and power in advanced technologies, during the National People\'s Congress.

Japanese markets ended slightly higher while the yen hit a one-month high against the greenback, helped by growing expectations that the Bank of Japan could finally move away from its ultra-easy monetary policy stance this month.

The Nikkei average rose 0.23 percent to 39,688.94 but posted its first weekly drop in six. The broader Topix index closed up 0.30 percent at 2,726.80. Automakers lost ground, with Toyota Motor, Suzuki Motor and Subaru falling 1-3 percent.
Seoul stocks rallied following Fed chief\'s dovish comments. The Kospi average climbed 1.24 percent to 2,680.35, led by pharmaceutical stocks such as Samsung Biologics and Celltrion.

Australian markets hit a new record high on hopes the Fed and ECB would cut interest rates sooner rather than later.

The benchmark S&P ASX 200 jumped 1.07 percent to 7,847.0, while the broader All Ordinaries index closed up 1.01 percent at 8,107.50.

Banks topped the gainers list, with Westpac rallying 2.6 percent and NAB adding 2.3 percent.

Across the Tasman, New Zealand\'s benchmark S&P/NZX-50 index rose 1.01 percent to 11,923.72.

U.S. stocks rose overnight to extend gains from the previous session while the ten-year yield fell to its lowest closing level in a month after Powell told a U.S. Senate committee that the U.S. central bank is \"not far\" from gaining the confidence it needs in falling inflation to begin cutting interest rates.

In economic releases, weekly jobless claims came in unchanged, the U.S. trade deficit widened more than expected in January and labor costs edged up less than expected in Q4 while worker productivity grew solidly in the fourth quarter.

The S&P 500 rallied 1 percent to reach a record closing high, while the tech-heavy Nasdaq Composite jumped 1.5 percent and the Dow inched up 0.3 percent.

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