Asia stock markets trade higher on Friday, buoyed by a rebound in technology shares and following a Wall Street rally, fueled by softer-than-expected November CPI data and increased optimism for Fed rate cuts. Japanese stocks outperformed regional peers for the day, after the Bank of Japan’s latest rate hike. Gold traded around $4,320 per ounce on Friday, near its October record high and on track for a second weekly gain. The number of foreign tourist arrivals in Sri Lanka rose by 15.6% year-on-year to 212,906 in November 2025, following a 21.5% increase in the previous month. South Korea’s producer prices rose 1.9% year-on-year in November 2025, the highest since July 2024 and up from 1.6% in October. Japan ( NKY:IND ) rose 1.29% to above 49,700, while the broader Topix Index gained 1% to 3,390 on Friday. The Japanese yen weakened to around 156 per dollar on Friday, extending recent losses, after the Bank of Japan delivered a widely expected interest rate hike. The central bank raised benchmark rates by 25 basis points to 0.75% , the highest level since 1995, and aligning with market expectations. This is the second time the bank has raised rates this year, following a similar move in January. The core consumer price index, which excludes fresh food but includes energy, rose 3% year-on-year in November 2025, unchanged from October and in line with market expectations. Separately, Japan’s headline inflation eased slightly to 2.9% in November from 3% in October but stayed above the BOJ’s target for the 44th consecutive month. Core inflation held steady at 3% during the same period. Market attention is focused on Governor Kazuo Ueda’s post-meeting press conference for signals on whether the central bank will continue hiking rates next year. China ( SHCOMP ) rose 0.44% to around 3,900, while the Shenzhen Component climbed 0.8% to 13,155 on Friday, marking a third consecutive session of gains for mainland markets as gains in defense and aerospace stocks supported the market, and the offshore yuan weakened to around 7.03 per dollar, retreating from an over one-year high hit in the previous session, dragged down by a weaker-than-expected daily fixing. Attention is also on the Standing Committee of the 14th National People’s Congress, which is scheduled to convene its 19th session in Beijing from December 22 to 27. Hong Kong ( HSI ) rose 0.80% to 25,649 in early Friday trade, sustaining gains for a third straight session amid broad-based strength across sectors. India ( SENSEX ) rose 0.62% to 84,950 in Friday morning trade, snapping a four-session losing streak and tracking gains in Asian peers. Almost all sectors traded in the green, led by healthcare, pharmaceuticals, oil & gas, and auto stocks. Australia ( AS51 ) rose 0.47% to around 8,640 in early Friday trading after pausing in the previous session, as gains in banks and tech stocks lifted the market. The Australian dollar held steady around $0.661, hovering two-week lows and headed for its first weekly decline in a month, as investors awaited the Reserve Bank’s December meeting minutes for clearer guidance on the policy outlook. Australia’s private sector credit rose 0.6% month-on-month in November 2025, surpassing market expectations of a 0.2% growth but easing from a 0.7% increase in the previous month. The Reserve Bank of Australia’s Index of Commodity Prices dropped 3.8% year-on-year in December 2025, slipping further from an upwardly revised 1.8% fall in the previous month. New car sales in Indonesia fell 0.8% year-on-year to 74,252 units in November 2025, slowing from a 4.4% drop in the previous month. In the U.S. on Thursday, all three major indexes ended higher after latest data showed inflation rate unexpectedly decreased. U.S. stock futures held steady on Friday after the major indexes rebounded in the previous session: Dow -0.19% ; S&P 500 -0.01% ; Nasdaq +0.06% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: CHIQ: Opportunities In The China Consumer Market Overlooked GXC: China Stocks Still A Solid Play, Low-Teen P/E, Strong Chart DXJ: Japanese Large Caps May Underperform If Yen Strengthens Japan inflation dips to 2.9% in November, driven by slowing food costs; core inflation holds at 3% Japan raises key interest rate to 0.75%, marks second increase this year; hawkish tone suggests more to come
