Asia-Pacific markets experienced an upward trajectory on Friday, following the gains observed, as two significant benchmarks reached new highs in the aftermath of the Federal Reserve’s recent decision to lower interest rates. The central bank on Wednesday reduced its key overnight borrowing rate by 25 basis points, establishing a new range of 3.5%-3.75%. Japan’s benchmark index experienced an increase of 1.37%, concluding the session at 50,836.55, while the broader Topix index saw a gain of 1.98%, finishing the trading day at 3,423.83. South Korea’s Kospi increased by 1.38%, reaching 4,167.16, whereas the small-cap Kosdaq experienced a rise of 0.29%, settling at 937.34.

Australia’s benchmark index was 1.23% higher at 8,697.3, while India’s Nifty 50 increased by 0.6%, and the rupee depreciated to an unprecedented level of 90.55 against the dollar. Hong Kong’s Hang Seng index increased by 1.75%, whereas the mainland’s CSI 300 experienced a rise of 0.63%, reaching 4,580.95. China’s senior leadership concluded an annual economic planning session on Thursday, reiterating their commitment to comprehensive economic support for the forthcoming year, which encompasses enhancing consumption and stabilizing the property sector, while policymakers continue to prioritize the enhancement of domestic technological capabilities, a central objective for the forthcoming five-year plan commencing in 2026.

Overnight in the U.S., the Dow Jones Industrial Average and S&P 500 reached new highs, as investors shifted their focus from high-flying tech stocks to companies poised to benefit from a strengthening U.S. economy following the Federal Reserve’s interest rate cuts. The 30-stock Dow increased by 646.26 points, representing a rise of 1.34%, concluding at 48,704.01, marking a new closing high. The index achieved a new record intraday high, bolstered by an increase in Visa shares following an upgrade from Bank of America, while the broad market S&P 500 experienced an increase of 0.21%, concluding at 6,901.00, which marks a new closing record.

However, the Nasdaq Composite experienced a decline of 0.26%, concluding at 23,593.86, contrasting with the broader market gains seen across Asia-Pacific and U.S. benchmarks. These movements reflect shifting investor sentiment following central bank actions, economic planning signals from China, and a continued rotation away from tech-oriented shares toward more cyclically aligned sectors expected to benefit from global monetary easing and economic resilience.