Asia-Pacific Markets Advance as BOJ Holds Rates, Geopolitical Fears Ease

• By Lee Ying Shan
• Mon, Jan 26
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Asia-Pacific markets rose Friday, buoyed by a stabilizing global sentiment after the Bank of Japan kept interest rates unchanged and geopolitical tensions showed signs of cooling.

Japan’s Nikkei 225 gained 0.29% and the Topix added 0.37% after the BOJ held its key policy rate at 0.75%. Governor Kazuo Ueda stated it was "still too early" to fully assess the impact of previous hikes, though the central bank signaled vigilance over the yen's weakness and inflationary trends.

The yen initially weakened past 159 against the dollar before rebounding to 157.3, while Japanese government bond yields moved mixed. HSBC economists projected the next 25-basis-point hike could come in July 2026, but warned that further yen depreciation might accelerate the timeline.

South Korea’s Kospi rose 0.76%, and Hong Kong’s Hang Seng edged up 0.41%, though mainland China’s CSI 300 slipped 0.45%. Australia’s S&P/ASX 200 climbed 0.13%.

The gains tracked a positive session on Wall Street, where the Dow Jones Industrial Average advanced 0.63%, the S&P 500 rose 0.55%, and the Nasdaq Composite jumped 0.91% as concerns over Greenland-related tariffs eased.

However, some Asian tech stocks softened after Intel issued soft quarterly guidance, dragging U.S. shares down in after-hours trading.

• Tags
• Finance
• Asia-Pacific
• Bank of Japan
• Markets
• Yen