Asian equity markets opened broadly higher on Friday, with shares in Japan, South Korea, Hong Kong and mainland China advancing as lower oil prices eased some inflation concerns and investors responded to a stronger session on Wall Street.
Tokyo and Seoul lead the advance
Japan’s Nikkei 225 opened around 0.85 per cent higher, while South Korea’s Kospi produced one of the region’s strongest moves, climbing more than 2 per cent in early trading. The broader MSCI Asia-Pacific index excluding Japan also advanced.
The Bank of Japan subsequently raised its policy rate from 1.0 per cent to 1.25 per cent, its highest level in 31 years. Despite the increase, the yen weakened against the dollar as markets focused on signs that the central bank could remain cautious about further tightening.
China and Hong Kong move higher
Chinese equities joined the regional advance. The Shanghai Composite opened 0.42 per cent higher, while the Shenzhen Component gained 1.15 per cent and the technology-focused ChiNext rose 1.61 per cent.
Hong Kong’s Hang Seng opened 0.5 per cent higher at 24,723, with both mainland Chinese companies and technology shares participating in the rise.
Lower oil provides some relief
Energy prices remained an important driver. Brent crude fell as hopes increased that alternative supply routes could improve flows from the Middle East, although prices remained above $100 a barrel. The decline offered some relief after higher energy costs had intensified concerns about global inflation.
Wall Street also provided a positive lead. The S&P 500 gained 1.1 per cent on Thursday, while the Nasdaq Composite rose 1.7 per cent as technology shares rebounded.
Monetary policy dominates the markets
Friday’s Asian session comes during an unusually active period for global central banks. The US Federal Reserve raised interest rates this week for the first time in three years, while the European Central Bank has also tightened policy and the Bank of England has warned that persistent inflation could require higher rates.
For Asian investors, the combination of falling oil prices, stronger US equities and central-bank action provided support at the opening.
But with energy prices still elevated and monetary policy tightening across several major economies, inflation and interest rates remain central to the direction of global markets.
Newshub Editorial in Asia – 18 September 2026