In Asian Equity Markets stocks rose on Friday and were headed for steep weekly gains on the prospect of a less hawkish Federal Reserve this year after data showed U.S. consumer inflation eased as expected in December. The KOSPI, Hang Seng, and Taiwan Weighted indexes were set to add between 2.8 percent and 4.4 percent this week, with the KOSPI in the lead. The three indexes also rose between 0.3 percent and 1 percent on Friday. The Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.8 percent and 0.6 percent, respectively. Australia’s ASX 200 index rose 0.7 percent.

In Currency Markets the dollar swayed on Friday as cooling U.S. inflation raised hopes of the Federal Reserve slowing the pace of interest rate hikes, while the yen hovered around seven month high on mounting speculation the Bank of Japan could further tweak its ultra-easy monetary policy. The Japanese yen strengthened 0.13 percent against the dollar at 129.09. Elsewhere, the euro down 0.01 percent to $1.0845. Sterling was last trading at $1.2194, down 0.05 percent on the day. The Australian dollar fell 0.27 percent to $0.695, while the kiwi fell 0.33 percent to $0.637.

In US Equity Markets stocks closed higher on Thursday, extending recent gains as data showing a fall in consumer prices in December bolstered expectations of less aggressive interest rate hikes from the Federal Reserve. The Dow rose 0.64 percent, to 34,189.97, the S&P 500 gained 0.34 percent, to 3,983.16 and the Nasdaq Composite added 0.64 percent, to 11,001.11. Microsoft shares rose 1.2 percent, providing the biggest boost to the S&P 500 and Nasdaq, while energy shares also were higher along with oil prices. Energy rose 1.9 percent and was the day’s best performer among sectors.

In Commodities Markets oil prices gained about $1 a barrel on Thursday, supported by figures showing U.S consumer prices unexpectedly fell in December and by optimism over China’s demand outlook. Brent crude settled at $84.03 a barrel, rising 1.7 percent. U.S. West Texas Intermediate crude settled at $78.39 a barrel, gaining 1.3 percent. Spot gold jumped 1.1 percent to $1,896.30 per ounce. Spot silver jumped 1.8 percent to $23.85 per ounce, platinum gained 0.4 percent to $1,075.25, while palladium was up 0.4 percent to $1,780.46.

In European Equity Markets stocks ended higher on Thursday, with retailers leading sectoral gains, while U.S. inflation data showed signs of moderating last month, easing worries about the Federal Reserve delivering big interest rate hikes in the near term. The STOXX 600 rose 0.6 percent, closing out at its highest level since late April, with the European retail sector jumping 1.9 percent. British retailer Tesco edged 0.9 percent higher on keeping its full-year profit guidance unchanged after it joined retail rivals in reporting stronger-than-expected Christmas sales.

In Bond Markets U.S. Treasury yields were mixed in choppy trading, with the front end of the curve lower on Thursday, after data showing an unexpected fall in consumer prices in December, affirming expectations that the Federal Reserve will continue to slow the pace of rate increases. In mid-morning trading, U.S. benchmark Treasury 10-year yield was flat at 3.55 percent. U.S. two-year yield slid 5.6 bps to 4.171 percent. U.S. 30-year yields rose 2.1 bps to 3.70 percent. The breakeven rate on five-year U.S. Treasury Inflation-Protected Securities (TIPS) rose to 2.264 percent.