Concurrently, oil prices dipped, exerting additional pressure on the broader dollar index across Asia. Trump's stern calls on OPEC, particularly Saudi Arabia, to boost production and slash prices are a boon for Asia's vast oil-dependent economies, alleviating some of their financial strain.

Japan's central bank has raised its key interest rate to about 0.5% from 0.25%, noting that inflation is holding at a desirable target level.

Equity benchmarks rose in Tokyo ahead of a key interest rate decision by the Bank of Japan later Friday, where a hike is expected. Stocks also rose in Sydney and Seoul. The S&P 500 advanced 0.5%, with the gauge topping the 6,

Japan's central bank raised interest rates to their highest since the 2008 global financial crisis and revised up its inflation forecasts.

Asian markets rose Friday after a record day on Wall Street in response to Donald Trump's tax-cut pledge, while the yen weakened slightly ahead of an expected interest rate hike by the Bank of Japan later in the day.

Equity benchmarks rose in Tokyo ahead of a key interest rate decision by the Bank of Japan later Friday, where a hike is expected. Stocks also rose in Sydney and Seoul.

Wall Street stocks retreated Friday as the market's latest rally lost steam, while the yen pushed higher after the Bank of Japan lifted interest rates.

The Bank of Japan increased interest rates on Friday to their highest in 17 years and signalled more hikes to come, sending the yen higher against the dollar.

After Trump said he would “demand that interest rates drop immediately,” the 2-year Treasury yield edged lower and stocks ticked up.

Asian equities were on track to close the week higher, following a rebound in technology stocks that pushed Wall Street to a record high. Oil fell after President Donald Trump urged OPEC to lower crude prices and said he will push for interest-rate cuts.

Chip giant Nvidia ( NVDA) was more than 11% lower in the first hour of US trading. Industry peer ASML ( ASML) lost 8%, while Arm ( ARM ), Broadcom ( AVGO ), and Micron Technology ( MU) also got hammered.

Robust investment flows, resilient Asian consumer demand and relentless central-bank purchases look set to offset any potential headwinds from a hawkish shift in U.S. monetary policy and with the macroeconomic outlook clouded by recession risks and policy uncertainty.