Japan inflation data, rate decision

Asia-Pacific markets are set to climb on Friday, after the S&P 500 hit record highs on Thursday as U.S. President Donald Trump called for lower interest rates and cheaper oil prices.

Japan’s core inflation rate rose to a 16-month high at 3% in December, year on year, boosting the case for a rate hike from the Bank of Japan.

The CPI announcement comes ahead of the Bank of Japan’s monetary policy meeting today. Market watchers expect the central bank to raise rates its their level in 17 years.

Singapore’s central bank will also be announcing its monetary policy decision in the next hour.

In Japan, the benchmark Nikkei 225 was set to rise, with the futures contract in Chicago at 40,060 while its counterpart in Osaka last traded at 40,010, against the index’s last close of 39,958.87.

Futures for Hong Kong’s Hang Seng index stood at 19,801 pointing to a slightly stronger open compared to the HSI’s close of 19,700.56. The index had closed down 0.03% on Thursday’s, erasing the gains it had earlier in the week.

Australia’s S&P/ASX 200 started the day up 0.43%.

Overnight in the U.S., stocks finished higher as the three major indexes rose.

The S&P 500 added 0.53%, notching an all-time intraday high for the second straight session to finish the day at 6,118.71.

The Dow Jones Industrial Average advanced 408.34 points, or 0.92%, to 44,565.07, while the Nasdaq Composite rose 0.22% to 20,053.68. Thursday marked the fourth straight winning session for all three major indexes.

— CNBC’s Alex Harring and Jesse Pound contributed to this report.