Global Markets Rally Amid Trump’s Rate Comments

Global markets saw an upswing after President Trump advocated for lower interest rates at the World Economic Forum. Investors remain cautious amid uncertainties surrounding Trump's next moves on tariffs and trade. Meanwhile, the Bank of Japan is expected to announce a rate hike, affecting global markets further.

Global shares rose on Friday, buoyed by the prospect of reduced U.S. interest rates following remarks from President Donald Trump. This comes as the yen steadied ahead of a widely anticipated rate increase from the Bank of Japan.

At the World Economic Forum in Davos, Trump expressed desires to lower global oil prices, interest rates, and taxes, while cautioning about potential tariffs on U.S. imports. His comments impacted markets, pushing the S&P 500 to record highs and leaving the dollar in a defensive position as investors assess future trade and tariff actions.

MSCI's Asia-Pacific shares rose 0.29% in line with Wall Street, though China's CSI300 remained steady. Uncertainty persists regarding Trump's tariff plans, affecting bond prices with rising U.S. Treasury yields. Investors await the BOJ's meeting amid anticipation of a 25-basis-point rate hike, the first since the 2008 global financial crisis.

(With inputs from agencies.)