Asian Shares Extend Rally On Fed Rate Optimism

Asian stocks traded higher on Friday to extend gains from the previous session, as a hawkish interest-rate hold by the Federal Reserve coupled with weak U.S. economic data released overnight fueled hopes that the U.S. central bank is done with the most aggressive tightening cycle in four decades.

The dollar eased and Treasury yields fell after weeks of high levels ahead of the all-important U.S. jobs report due later in the day, with economists expecting a slowdown in hiring for October.

Gold edged down slightly in Asian trade while oil was tad lower after rising sharply on Thursday to snap a three-day losing streak.

Shares of Apple were down nearly 3 percent in U.S. after-hours trading on below expectations sales forecast for the holiday quarter.

Japanese markets remain shut for a holiday. China’s Shanghai Composite index was up 0.4 percent after a private sector survey showed China’s services activity expanded at a slightly faster pace in October.

Hong Kong’s Hang Seng index was up 1.3 percent despite survey results showing further contraction in Hong Kong’s private sector activity in October.

Seoul stocks rallied, with the Kospi average gaining more than 1 percent on positive global sentiment.

Australia’s benchmark S&P ASX 200 was up 1.2 percent while New Zealand’s benchmark S&P NZX-50 index rose 0.9 percent.

Overnight, U.S. stocks extended the week’s rally and Treasury yields fell as data showing an uptick in weekly jobless claims and declining labor costs added to bets that the Fed is done raising interest rates.

The Dow jumped 1.7 percent to post its best single-day gain since June and the S&P 500 soared 1.9 percent to mark its best day since April, while the tech-heavy Nasdaq Composite added 1.8 percent, marking its best session since July.

European stocks rose for a fourth straight session on Thursday as investors reacted to a slightly dovish Fed policy statement, weak U.S. economic data and the Bank of England’s status quo decision on rates.

The pan European STOXX 600 advanced 1.6 percent. The German DAX rallied 1.5 percent, France’s CAC 40 surged 1.8 percent and the U.K.’s FTSE 100 climbed 1.4 percent.