HONG KONG, Sept 20, 2024 (BSS/AFP) - Asian markets built Friday on the latest
global rally after a jumbo US interest rate cut this week, while the yen
edged up after the Bank of Japan decided against another hike.

Traders have been put in a bullish mood by the Federal Reserve's decision to
go big on its first reduction since the start of the Covid pandemic -- opting
for 50 basis points instead of 25 -- and pledging more would come.

There had been fears the move could signal officials were worried about the
economy and were behind the curve in easing policy, but data Thursday showing
jobless claims at their lowest since May suggested it was heading for a soft
landing, rather than recession.

After a muted initial reaction to the Fed cut, Wall Street bounded higher
Thursday, with the S&P 500 and Dow hitting new records and the Nasdaq piling
on more than two percent.

Asia continued the run, extending the previous day's advances.

Tokyo jumped more than two percent, matching Thursday's performance, thanks
to a weaker yen, while Hong Kong was more than one percent higher, with
Sydney, Seoul, Taipei and Manila also enjoying strong buying.

Shanghai dipped after China's central bank decided against lowering interest
rates despite ongoing worries about the economy.

Singapore and Jakarta also fell.

With the Fed out the way, attention turned to the Bank of Japan as it wound
up its own policy meeting by keeping borrowing costs on hold.

The move had been widely expected after a hike at its previous gathering, but
investors will now be poring over the bank's statement and comments from boss
Kazuo Ueda hoping for guidance on its near-term plans.

The BoJ began to move away from its long-running policy of ultra-low rates in
March -- the first increase in 17 years -- but a second increase in July sent
shockwaves through markets.

The move sparked a surge in the yen as investors unwound their so-called
carry trade in which they used the cheap currency to buy higher yielding
assets such as stocks.

Bets on more tightening -- and a period of cutting by the Fed -- helped push
the yen this week to less than 140 per dollar, its strongest level since
summer.

Friday's meeting came hours after figures showed the consumer price index
(CPI) edged up to 2.8 percent in August, as expected.

Masamichi Adachi, UBS Securities' chief economist for Japan, said: "We think
it is reasonable to expect the next rate hike will be coming soon, which is
in line with the consensus view among BoJ watchers.

"October is still possible, but elevated market nervousness and political
developments make us think that the risk is more skewed to December than
before."

But Stefan Angrick, senior economist at Moody's Analytics, said further
tightening could weigh on the economy.

"Price pressures will ease going into 2025. Supply shocks that drove the
initial pickup in inflation are fading and the yen is appreciating," he wrote
in a commentary.

"But the implications for monetary policy are limited. The Bank of Japan used
to emphasise the importance of demand-driven price pressure, but recent CPI
releases show little evidence to suggest demand is playing much of a role in
driving prices.

- Key figures around 0315 GMT -

Tokyo - Nikkei 225: UP 2.1 percent at 37,935.58 (break)

Hong Kong - Hang Seng Index: UP 1.4 percent at 18,272.53

Shanghai - Composite: DOWN 0.2 percent at 2,731.16

Dollar/yen: DOWN at 142.22 yen from 142.57 yen on Thursday

Pound/dollar: UP at $1.3292 from $1.3281

Euro/dollar: UP at $1.1165 from $1.1161

Euro/pound: DOWN at 84.00 pence from 84.03 pence

West Texas Intermediate: UP 0.1 percent at $72.01 per barrel

Brent North Sea Crude: DOWN 0.2 percent at $74.73 per barrel

New York - Dow: UP 1.3 percent at 42,025.19 (close)

London - FTSE 100: UP 0.9 percent at 8,328.72 (close)