HK stocks rally as Tokyo moves to tackle inflation

Asian stocks generally increased on Friday, paralleling a surge on Wall Street as oil prices fell and alleviated worries about inflation. In Hong Kong, the Hang Seng Index finished 146 points, or 0.6 percent, higher at 24,750 on a turnover of HK$266.51 billion. The tech index in Hong Kong surged 94 points, or 2.2 percent, to 4,405.

The China enterprises index in Hong Kong rose 50 points, or 0.6 percent, to 8,225. In Tokyo, the Nikkei rose 882 points, or 1.38 percent, to 65,018 following the Bank of Japan's decision to increase the benchmark interest rate to 1.25 percent, a 31-year high. The Nikkei also benefited from the yen's depreciation against the dollar following the Bank of Japan's forecast of a rate hike, which had been anticipated for three decades.

The yen fell to more than 157 to the greenback, contrasting with around 156 earlier. Stephen Innes of Quintex Intel noted that the market was seeking evidence that the Bank of Japan could hasten the rate increases, and the dissents in the decision mattered in this regard. The Tokyo Nikkei was also helped by a decline in the yen against the dollar, triggered by the Bank of Japan's expected rate hike.

For Japanese officials, the spike in oil prices due to the Middle East crisis, which appears unlikely to subside soon, has increased pressure to further tighten monetary policy.