Most Asian shares rose in trading on Friday, September 18, 2026, supported by gains on Wall Street and lower oil prices, while Japan’s Nikkei 225 climbed 1.4% to 65,000.72 points in afternoon trading after the Bank of Japan raised its interest rate to 1.25% from 1%.
Japan raises interest rate to highest level in 31 years
The Bank of Japan raised its benchmark interest rate to 1.25%, the highest level in 31 years, following a two-day meeting. Two of the nine members of the Policy Board voted against the decision, citing concerns about the strength of Japan’s economic growth.
Bank of Japan Governor Kazuo Ueda said the Japanese economy was continuing to recover gradually, noting that inflation had moved close to the bank’s 2% target. He added that the decision took into account a range of risks, including currency volatility and developments in demand linked to artificial intelligence.
Broad gains across Asian markets
South Korea’s Kospi jumped 2.7% to 6,893.98 points, Hong Kong’s Hang Seng Index rose about 1.0% to 24,837.05 points, while the Shanghai Composite added 0.9% to reach 3,909.81 points.
By contrast, Australia’s S&P/ASX 200 fell 0.2% to 8,719.50 points. In currency markets, the dollar rose to 157.23 yen from 155.95 yen, while the euro stood at $1.1484, compared with $1.1480.
Lower oil prices support Wall Street
Brent crude fell 1.27% to $103.49 a barrel in Asian trading, while the U.S. benchmark crude declined 0.93% to $100.96 a barrel, after Brent reached about $110 earlier in the week.
The S&P 500 rose 1.1% in Thursday’s session, while the Dow Jones Industrial Average gained 316 points, or 0.6%, and the Nasdaq Composite advanced 1.7%. The yield on 10-year U.S. Treasury notes also fell to 4.93% from 5.01% at Wednesday’s close.
Federal Reserve raises interest rates
The market moves came after the U.S. Federal Reserve decided on Wednesday, September 16, 2026, to raise the target range for the federal funds rate by 1/4 percentage point to between 3-3/4% and 4%, citing persistently high inflation and its efforts to bring it back toward its 2% target.
