Investing.com - Share markets across the Asian Pacific lifted on Friday, reflecting the renewed rally in the US where stocks soared on Thursday. This followed comments from Federal Reserve Chair Jerome Powell that were interpreted as dovish by the market.
Indices across the Asia Pacific region also experienced an uplift on Friday. The S&P/ASX 200 rose by 0.7%, the KOSPI 200 by 1.3%, and the Nikkei 225 saw a modest increase of 0.2%.
U.S. stocks extended gains from the previous session after Powell reassured lawmakers that the central bank was close to being able to reduce interest rates. This saw the Dow Jones Industrial Average (DJIA) rise by 130 points or 0.3% to 38,791, while the S&P 500 and the Nasdaq climbed by 1% and 1.5% respectively.
Economists are predicting a moderation in economic data in the coming months with an estimated payroll growth of 198,000 for February.
Large technology stocks regained their momentum, contributing to broad gains and propelling the S&P 500 to new heights. The U.S. dollar and Treasury yields weakened, while gold recorded another fresh high.
In commodity markets, Brent crude oil prices fell slightly by 0.2% to US$82.79 a barrel, while gold prices increased by 0.5% to US$2,158.83.
In local bond markets, the yield on Australian 2-year government bonds rose to 3.74%, while the 10-year yield also increased to 4.01%. U.S. Treasury notes saw a decrease, with the 2-year yield at 4.51% and the 10-year yield down to 4.08%.
The Australian dollar appreciated to 66.18 US cents, up from its previous close of 65.62.
Chinese shares closed lower amid various geopolitical concerns, with pharmaceutical stocks taking the biggest hit. This was due to a U.S. Senate committee advancing a bill targeting certain Chinese biotech providers. Energy stocks in China, however, saw an increase.
Hong Kong's Hang Seng Index fell 1.3% to close at 16,229.78, with biotech stocks experiencing a dip due to renewed U.S. sanction concerns.
Japanese stocks ended lower as the yen strengthened to a one-month high amid growing expectations of a shift by the Bank of Japan away from its ultra-low interest rate policy.
In Europe, the Stoxx Europe 600 index closed at a new record high of 503.16 after the European Central Bank (ECB) eased its inflation projections. France's CAC 40 and Germany's DAX also ended at all-time highs. The ECB's unchanged interest rates and reduced forecasts for inflation and growth in 2024 could potentially set the stage for rate cuts in the coming months.
The FTSE 100 in the UK closed higher for the third consecutive day as the ECB left interest rates unchanged despite a less-than-ideal economic outlook and lowered inflation forecasts.