SINGAPORE — Asian equities climbed Friday even as the Bank of Japan delivered a widely expected rate rise, after a dovish split vote knocked the yen and a pullback in oil cooled inflation nerves.
The BOJ lifted its policy rate to 1.25% from 1%, a 31-year high, on a 7-2 vote. Board members Toichiro Asada and Ayano Sato dissented. The yen weakened about 0.5% to 156.75 per dollar in the immediate reaction, giving back some of its nearly 2% gain this month.
MSCI’s Asia-Pacific shares ex-Japan rose about 1%. Japan’s Nikkei was up 0.8%, while South Korea’s Kospi surged over 2%. Chip names led emerging Asia: Samsung Electronics and SK Hynix advanced as much as 3.6% and 6.1%, Taiwan’s TSMC as much as 1.4%, after the Philadelphia Semiconductor Index jumped 3.1% overnight.
Brent crude fell as much as 1.5% to $103.29 a barrel on hopes of alternate Mid-East supply routes, though prices stayed above $100. Spot gold rose 0.5% to $4,361 an ounce. The 10-year U.S. Treasury yield steadied near 4.936% after touching above 5% this week.
ASEAN was mixed: Thailand gained about 0.6%, Jakarta shed as much as 0.9%, and the Philippines fell nearly 1.2% to a fourteen-week low. The ringgit and Taiwan dollar firmed about 0.5% and 0.4%; the won slipped 0.4%.
HSBC’s Fred Neumann said the statement tone plus two dissenters “leaves lingering doubts” the BOJ will stay cautious on further tightening. Markets now watch Governor Kazuo Ueda’s press conference for December hike clues.
Bottom line: Rate hike is in; the yen and Asia chips are telling you the path of policy — and AI supply-chain risk appetite — still matters more than the move itself for APAC desks.
