On Friday, Japan’s benchmark Nikkei 225 index experienced a reduction in its gains, ultimately declining by 0.59%. The Japanese yen experienced an appreciation of 0.36% relative to the dollar, reaching a value of 147.45. This movement followed the Bank of Japan’s decision to maintain its policy rate at 0.5%. The benchmark index achieved a new record high for the second consecutive session earlier today.

The decision to maintain the current stance arises as Japan’s core inflation rate has decreased to its lowest level since November 2024, registering at 2.7% for August, thereby indicating a third consecutive month of decline. The core inflation figure, which excludes the prices of fresh food, aligned with the 2.7% forecasted by economists. Headline inflation in the country has decreased to 2.7%, a decline from 3.1% recorded in July, thereby establishing a new low since November 2024. “The Bank of Japan’s decision to hold rates steady underscores its cautious stance amid slowing inflation and global uncertainty – prioritizing stability over premature tightening,” stated Hiroaki Amemiya. “By preserving policy optionality, the Bank of Japan is signaling its readiness to respond to external volatility while continuing to assess the strength of Japan’s economic recovery.”

“The BoJ’s strategy supports the early stages of a reflationary cycle, rather than reversing course,” Amemiya noted. The yields on Japan’s 2-year government bonds have increased to 0.885%, which represents the highest level observed since June 2008, according to data. In the meantime, the Topix experienced an increase of 0.84%. Australia’s ASX/S&P 200 experienced an increase of 0.77%. At the opening, South Korea’s Kospi and the small-cap Kosdaq exhibited no significant movement, remaining flat. The Hang Seng Index in Hong Kong experienced a decline of 0.4%, whereas the CSI 300 on the mainland registered an increase of 0.13%. Zijin Gold, which operates as a subsidiary of China’s largest gold mining entity, Zijin Mining, is aiming to secure approximately HK$25 billion (equivalent to $3.2 billion) through an initial public offering in Hong Kong, as indicated by a company filing released on Friday. The firm is set to offer nearly 349 million shares at a price of HK$71.59 each, with trading anticipated to commence on September 29.

India’s Nifty 50 experienced a decline of 0.55%. Adani Enterprises, experienced a notable increase of over 4% following the decision by India’s market regulator to clear both the Adani Group and its founder, Gautam Adani, of specific allegations of misconduct. Shanghai SHANGHAI 3,831.344 -0.313 -0.01%. In the United States, the major stock indices experienced an upward trajectory overnight, with smaller companies witnessing the most significant gains. This positive movement followed the Federal Reserve’s indication of a shift towards a more accommodative monetary policy, which has revitalized investor sentiment and heightened expectations for an acceleration in economic growth.

The S&P 500 concluded the trading session with an increase of 0.48%, reaching a level of 6,631.96. In contrast, the Nasdaq Composite experienced a more pronounced rise, climbing 0.94% to finish at 22,470.73. The Dow Jones Industrial Average experienced an increase of 124 points, translating to a rise of 0.27%, ultimately concluding the trading session at 46,142.42. On Thursday, each of the major U.S. indexes achieved a new all-time intraday high, following a day characterized by volatility in trading on Wednesday, which was influenced by the Federal Reserve’s decision to cut interest rates.