Stock market today: Asian shares gain after S&P 500 climbs to a record and Bank of Japan raises rate

HONG KONG (AP) — Asian shares advanced Friday after U.S. stocks rose to a record and the Bank of Japan raised its key lending rate.

U.S. futures edged lower and oil prices fell after U.S. President Donald Trump called on oil-producing countries to reduce the price of crude, which would ease worries about inflation.

Markets showed little obvious reaction to Trump’s most recent comments about imposing higher tariffs on products from China and other countries.

Tokyo’s Nikkei 225 index lost nearly 0.1% to 39,931.98 after the central bank raised its benchmark rate to about 0.5% from 0.25%, as widely expected. It is the highest level for the rate since 2008, as the Bank of Japan shifts out of a long spell of extreme low interest rates meant to spur more borrowing and spending.

A stronger yen tends to make profits weaker when overseas revenues are converted into yen. Shares in export manufacturers fell as the U.S. dollar dropped against the Japanese yen, trading at 155.40 yen, down from 156.06 yen. Toyota Motor Corp.’s shares fell 1.5%, Nissan Motor Corp. lost 2.5% and Honda Motor Co. was down 0.8%.

Just before the BOJ’s decision, statistics from the government showed the core inflation rate increased to 3% year-on-year in December, reaching the highest level in 16 months and above the central bank’s 2% target.

The Hang Seng in Hong Kong added 1.9% to 20,063.53 and the Shanghai Composite index rose 0.7% to 3,252.63. In South Korea, the Kospi gained 0.9% to 2,536.80. Australia’s S&P/ASX 200 advanced 0.4% to 8,408.90.

On Thursday, the S&P 500 climbed 0.5% to 6,118.71, surpassing its record set early last month. It was the seventh gain in eight days for the main measure of Wall Street’s health. The Dow Jones Industrial Average piled on 0.9% to 44,565.07, while the Nasdaq composite added 0.2% to 20,053.68.

The gains came amid relatively calm moves for Treasury yields in the U.S. bond market. Big swings there in recent months have been shaking the stock market, particularly when rising worries about inflation and the U.S. government’s heavy debt send Treasury yields higher.

Treasury yields took a brief turn upward after President Donald Trump began talking about the prospect of tariffs in a speech by video at the World Economic Forum, saying products made outside of the United States will be subject to a tariff, but they pulled back after he gave few details.

The yield on the 10-year Treasury climbed to 4.64% from 4.61% late Wednesday, though it remains below its high from earlier this month. The two-year Treasury yield eased to 4.29% from 4.30% late Wednesday.

Yields earlier in the day had held relatively steady after a report showed slightly more U.S. workers applied for unemployment benefits last week than economists expected. While the numbers increased, “they were well within the modest range established in recent months,” according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley. “Employment continues to highlight US economic outperformance.”

Traders don’t expect the report to push the Federal Reserve to cut its main interest rate at its upcoming meeting next week, according to data from CME Group. If they’re correct, it would be the first meeting since September where the Fed hasn’t lowered the federal funds rate to take pressure off the U.S. economy. Lower rates can goose prices for investments, but they can also give inflation more fuel.

In the cryptocurrency market, where prices have surged on hopes President Donald Trump will make Washington friendlier to the industry, bitcoin fell below $103,000, according to CoinDesk. It had set a record above $109,000 on Monday.

In other dealings early Friday, U.S. benchmark crude oil shed 4 cents to $74.58 per barrel. Brent crude, the international standard, lost 4 cents to $78.25 per barrel.

The euro rose to $1.0458 from $1.0416.