SINGAPORE : Asian equities rose on Friday as investors looked to end the year on an optimistic note after U.S. data showed the Federal Reserve's aggressive monetary policy was dampening inflationary pressures even as worries over COVID cases in China persist.
U.S. stocks closed sharply higher overnight buoyed by data showing rising U.S. jobless claims that suggested the Federal Reserve's interest rate hikes are reducing inflationary pressures. Going into 2023, inflation has still to be beaten, and investors will also be wary of geo-political tensions arising from Russia's war in Ukraine and diplomatic strains over Taiwan, analysts said.
In the currency market, the U.S. dollar was on track for its best annual performance in seven years. The dollar index, which measures the greenback against six major currencies, was 0.048 per cent lower on Friday, but entering the 2022's final few hours of trading, it had gained nearly 9 per cent over the year.