Asian stocks were on the cusp of an intraday record high after US and global equity benchmarks hit fresh peaks, as the Federal Reserve's interest-rate cut bolstered sentiment.

Stocks in Japan and Australia opened higher while South Korea was flat. The S&P 500, Nasdaq 100, Dow Jones Industrial Average and Russell 2000 small-cap index all closed together at fresh highs for the first time since November 2021. An MSCI index of global stocks also closed at a record in a sign of robust risk appetite.

The yen was steady after Japan's consumer inflation slowed abruptly, with the Bank of Japan's rate decision due later on Friday.

The upbeat mood in stocks reflected expectations for further rate cuts alongside an economy and jobs market that for now remain relatively resilient. Thursday's data showed jobless claims dropped by the most in nearly four years, suggesting US companies are still holding onto workers.

Worries have been mounting for weeks that the S&P 500's push to record after record risks becoming a bubble, with the index's swollen valuation cited most often as a cause for concern.

Critics point to the tech sector's outsize influence on this year's gain, with just five stocks, all megacap tech firms, driving about half of the advance. But a closer look shows tech giants have largely justified their elevated valuations with profit growth.

On the BOJ, economists polled by Bloomberg anticipate the central bank will leave its target interest rate unchanged at 0.5%. BOJ watchers will be looking for clues as to the likelihood of a move next month or in December.

Source : Bloomberg