SYDNEY : Japan's Nikkei charged toward an all-time high on Friday, helped higher by a buoyant Wall Street after a big fall in U.S. retail sales revived the chance of a June rate cut, which in turn weighed on the dollar.Nikkei surged 1.
A pedestrian is reflected on a glass of a business building while an electric board showing Nikkei index is seen in the building at a business district in Tokyo, Japan January 23, 2024. REUTERS/Kim Kyung-Hoon/File PhotoSYDNEY : Japan's Nikkei charged toward an all-time high on Friday, helped higher by a buoyant Wall Street after a big fall in U.S. retail sales revived the chance of a June rate cut, which in turn weighed on the dollar.
Elsewhere, Asian shares mostly tracked Wall Street higher. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent and was headed for a 1.4 per cent weekly gain. "One by one the dominoes are starting to fall. The UK and Japan fell yesterday. Obviously there's a long way to go for the U.S. to fall into recession because their numbers have been pretty good. Europe you know it could be the next to go. And China's not great."
Markets moved to fully price in a rate cut from the Federal Reserve in June, reversing some of the price action after a stronger-than-expected U.S. inflation report prompted traders to give up bets for early rate relief. The yen caught some respite from the dollar's retreat and was last at 149.9 per dollar. It gained 0.4 per cent overnight to move away from the critically watched 150 level that could invite possible Japanese intervention.