Stocks rise as oil dips, yen wobbles ahead of BOJ

Asian stocks climbed higher and the dollar remained steady on Friday (Sep 19) as global policymakers intensified efforts to curb inflation, buoyed by falling oil prices and anticipations of a rate increase from the Bank of Japan. The ongoing Middle East conflict, with no clear resolution in sight, has kept oil prices above US$100 per barrel and heightened global inflation concerns.

Brent crude futures dipped 1% to US$103.77 a barrel amid hopes for alternative Middle East supply routes. Wall Street's rally, spurred by struggling tech stocks, influenced traders' decisions. Bond prices stabilized after a week of steep declines, lifting the 10-year US Treasury yield to its highest since 2007, at 4.936%. Market sentiment is driven not only by the Bank of Japan's interest rate hike but also by how Governor Ueda communicates the central bank's rate hike trajectory.

The yen has weakened to 156.23 per US dollar, as traders await the BOJ's decision, which could counter inflation risks.