Asian Stocks Inch Up Amid Policy Anticipations and Market Reforms

Asian stocks saw modest gains in early trading ahead of the Bank of Japan's policy meeting, where rates are expected to remain unchanged. Wall Street's second-day rally continued after President Trump's softened stance on tariffs. Korean markets gained, and energy markets steadied amid eased geopolitical fears.

In early Asian trading on Friday, stocks witnessed slight gains as investors eyed the Bank of Japan's policy meeting, where rate maintenance is anticipated. The MSCI's broad index for Asia-Pacific shares outside Japan rose by 0.4%, and the Nikkei 225 edged up 0.2%. Meanwhile, S&P 500 futures saw minor fluctuations.

Wall Street extended its two-day rally after President Trump retracted previous tariff threats against European goods and dismissed the notion of acquiring Greenland by force. Consequently, both the S&P 500 and Nasdaq Composite saw increases, climbing 0.5% and 0.9%, respectively. Analysts from Societe Generale noted the resultant rebound in risk assets, though they warned of lingering policy uncertainties.

The U.S. dollar experienced its largest one-day fall in six weeks, while precious metals markets set records. Gold rose to $4,951.47 an ounce, marking a five-day rally, and Brent crude futures stabilized in light of Trump's softened geopolitical stance. Korean stocks also rose, led by tech industry gains, as market reforms catalyzed optimism.

(With inputs from agencies.)