The Japan Times - Asian markets build on Trump rally, yen climbs after BoJ cut

EUR -
AED 3.839032
AFN 78.318295
ALL 98.686181
AMD 418.630098
ANG 1.881327
AOA 955.800527
ARS 1094.340711
AUD 1.653056
AWG 1.881379
AZN 1.776484
BAM 1.96609
BBD 2.10768
BDT 127.301836
BGN 1.95521
BHD 0.393966
BIF 3088.952288
BMD 1.045211
BND 1.416338
BOB 7.213608
BRL 6.192247
BSD 1.043856
BTN 90.188095
BWP 14.488773
BYN 3.416238
BYR 20486.127443
BZD 2.096843
CAD 1.497813
CDF 2974.669187
CHF 0.945842
CLF 0.037408
CLP 1032.197824
CNY 7.568896
CNH 7.571683
COP 4417.331682
CRC 526.79962
CUC 1.045211
CUP 27.69808
CVE 110.642972
CZK 25.098667
DJF 185.893259
DKK 7.460462
DOP 64.058834
DZD 140.778224
EGP 52.565522
ERN 15.678159
ETB 133.481592
FJD 2.408426
FKP 0.860822
GBP 0.842409
GEL 2.994518
GGP 0.860822
GHS 15.81495
GIP 0.860822
GMD 75.255015
GNF 9026.836922
GTQ 8.06756
GYD 218.395023
HKD 8.137283
HNL 26.57679
HRK 7.713182
HTG 136.42605
HUF 409.69429
IDR 16898.024029
ILS 3.734135
IMP 0.860822
INR 90.199058
IQD 1367.445216
IRR 43990.30736
ISK 145.880122
JEP 0.860822
JMD 164.110625
JOD 0.741576
JPY 162.260058
KES 135.187213
KGS 91.401889
KHR 4203.359256
KMF 493.745458
KPW 940.689642
KRW 1496.219752
KWD 0.321998
KYD 0.869955
KZT 543.516327
LAK 22759.531956
LBP 93480.648443
LKR 311.701834
LRD 206.696102
LSL 19.376608
LTL 3.086235
LVL 0.632237
LYD 5.137501
MAD 10.437907
MDL 19.46832
MGA 4893.717616
MKD 61.575094
MMK 3394.803205
MNT 3551.625676
MOP 8.375451
MRU 41.579439
MUR 48.455717
MVR 16.094183
MWK 1810.183838
MXN 21.211368
MYR 4.590463
MZN 66.78705
NAD 19.376422
NGN 1626.358483
NIO 38.411218
NOK 11.724064
NPR 144.300952
NZD 1.830363
OMR 0.402336
PAB 1.043861
PEN 3.882188
PGK 4.190355
PHP 61.014694
PKR 290.959273
PLN 4.213021
PYG 8254.118238
QAR 3.8054
RON 4.975724
RSD 117.116883
RUB 104.389962
RWF 1449.050156
SAR 3.920503
SBD 8.828422
SCR 14.91201
SDG 628.171368
SEK 11.452702
SGD 1.409059
SHP 0.860822
SLE 23.731231
SLL 21917.543254
SOS 596.638199
SRD 36.692093
STD 21633.748813
SVC 9.134028
SYP 13589.827995
SZL 19.384219
THB 35.214217
TJS 11.425531
TMT 3.658237
TND 3.332886
TOP 2.447983
TRY 37.312999
TTD 7.096105
TWD 34.121421
TZS 2649.608991
UAH 43.843475
UGX 3847.123903
USD 1.045211
UYU 45.68607
UZS 13549.156159
VES 58.754499
VND 26198.203283
VUV 124.089499
WST 2.927454
XAF 658.205521
XAG 0.033877
XAU 0.000376
XCD 2.824734
XDR 0.804348
XOF 658.199202
XPF 119.331742
YER 260.363701
ZAR 19.24459
ZMK 9408.155357
ZMW 29.045947
ZWL 336.557382
  • RBGPF

    61.2800

    61.28

    +100%

  • RELX

    0.1300

    49.39

    +0.26%

  • CMSC

    -0.0050

    23.485

    -0.02%

  • GSK

    0.6200

    34.05

    +1.82%

  • SCS

    0.0200

    11.6

    +0.17%

  • NGG

    0.6600

    60.71

    +1.09%

  • BCC

    0.5300

    128.45

    +0.41%

  • RYCEF

    0.2800

    7.55

    +3.71%

  • RIO

    0.4400

    61.56

    +0.71%

  • CMSD

    -0.0900

    23.87

    -0.38%

  • BCE

    0.0700

    23.22

    +0.3%

  • JRI

    0.0200

    12.55

    +0.16%

  • VOD

    0.0200

    8.4

    +0.24%

  • BTI

    0.4800

    37.05

    +1.3%

  • AZN

    0.4000

    68.6

    +0.58%

  • BP

    0.3600

    31.49

    +1.14%

Asian markets build on Trump rally, yen climbs after BoJ cut
Asian markets build on Trump rally, yen climbs after BoJ cut / Photo: Richard A. Brooks - AFP

Asian markets build on Trump rally, yen climbs after BoJ cut

Asian markets rose Friday after a record day on Wall Street in response to Donald Trump's tax-cut pledge, while the yen strengthened after a widely expected interest rate hike by the Bank of Japan.

Text size:

In a much-anticipated speech via video link at the Davos World Forum in Switzerland, the president pushed for lower interest rates and said he would cut taxes for companies investing in the United States while imposing tariffs on those who do not.

He also called on Saudi Arabia and OPEC to lower oil prices, adding that "when the oil comes down, it'll bring down prices" and in turn bring interest rates down.

His comments come after he said on the campaign trail that he would slash taxes, regulations and immigration while hitting key trading partners with tariffs.

That fuelled worries among some economists that he could reignite inflation and cause the Federal Reserve to pause its recent run of rate cuts, or even increase them.

US traders appeared to welcome the speech, with the S&P 500 hitting a record high, while the Dow and Nasdaq also advanced.

Asia mostly followed suit, with Tokyo, Hong Kong, Shanghai, Sydney, Seoul and Bangkok all up, though Singapore, Wellington, Mumbai, Jakarta and Manila slipped.

Markets have enjoyed a broadly positive start to the president's second term amid relief that while he has warned about imposing big tariffs on key partners, he has so far been less abrasive than his first four years.

Matt Burdett and Adam Sparkman at Thornburg Investment Management said that could be due to circumstances.

"Eight years ago, Trump's aggressive trade policies were implemented against a backdrop of low inflation and low rates, creating room for bold actions," they said in a commentary.

"Today, elevated price levels are a key concern for voters and policymakers alike. Given this reality, we question if Trump's tariff posturing may now be aimed more at pressuring China and other foreign countries into negotiating favourable trade terms for the US."

- Japan hikes rates -

The Bank of Japan on Friday lifted borrowing costs to their highest level since 2008 in a well-telegraphed move, with data showing another jump in inflation last month that reinforced expectations for further tightening.

"Japan's economic activity and prices have been developing generally in line with the Bank's outlook, and the likelihood of realising the outlook has been rising," the bank said in a statement.

The yen rallied against the dollar after officials flagged that more increases were likely in the pipeline as inflation remains elevated and officials slowly withdraw stimulus that has kept monetary policy at ultra-loose levels for years.

"With no market turbulence after Trump's inauguration," conditions for the BoJ to hike its policy rate have been met, said Ko Nakayama, chief economist of Okasan Securities Research.

"Raising just 25 basis points to 0.5 percent won't cool the economy," he said.

Moody's Analytics said "the weak yen is a key reason" for the hike, along with a run of forecast-beating inflation prints.

The yen has come under pressure against the dollar in recent months after the Fed dialled back its expectations for rate cuts this year and the concerns over Trump's impact on inflation.

The BoJ decision comes ahead of the Fed's meeting next week, which will be closely watched for its views on the outlook under the new president.

Oil prices extended Thursday's losses after Trump's call to Riyadh and OPEC, with a recent build in US stockpiles adding to the weakness.

- Key figures around 0400 GMT -

Tokyo - Nikkei 225: UP 0.4 percent at 40,105.92

Hong Kong - Hang Seng Index: UP 1.8 percent at 20,057.46 (break)

Shanghai - Composite: UP 0.7 percent at 3,253.79 (break)

Dollar/yen: DOWN at 155.50 yen from 156.03 yen on Thursday

Euro/dollar: UP at $1.0447 from $1.0415

Pound/dollar: UP at $1.2394 from $1.2352

Euro/pound: DOWN at 84.30 pence from 84.31 pence

West Texas Intermediate: DOWN 0.2 percent at $74.47 per barrel

Brent North Sea Crude: DOWN 0.2 percent at $78.14 per barrel

New York - Dow: UP 0.9 percent at 44,565.07 (close)

London - FTSE 100: UP 0.2 percent at 8,565.20 (close)

T.Maeda--JT