Tokyo stocks rebounded Wednesday, with the Nikkei ending a three-day losing streak, as technology shares gained on easing concerns ov

Asian stocks advanced Wednesday in thin Lunar New Year trading following a rebound on Wall Street driven by tech stocks as the panic over Chinese AI company DeepSeek faded. Most markets in Asia were closed for holidays.

Giving explicit advance signals, in addition to making the Bank of Japan feel boxed in, could breach Japanese law stipulating the nine-member board must debate and sign off on rate decisions at each policy meeting.

TOKYO (AP) — The Bank of Japan raised its key interest rate to about 0.5% from 0.25% Friday, noting that inflation is holding at a desirable target level. “The economy is gradually recovering,” BOJ Gov. Kazuo Ueda told reporters after a two-day policy board meeting in Tokyo.

The return of inflation and wage growth is giving the Bank of Japan room to raise interest rates and declare the end of a long period of stagnation.

About 85.7% of Japanese households expect prices to rise a year from now, a quarterly central bank survey in December showed on Friday, roughly unchanged from 85.6% in the previous poll in September.

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.

Asian markets rose in holiday-thinned trade Wednesday, tracking a rally on Wall Street, where tech titans led by Nvidia recovered some of their hefty losses a day earlier as worries over Chinese AI startup DeepSeek subsided.

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Tokyo-listed companies linked to the AI sector tanked for a second straight day as investors tracked a rout on Wall Street that saw Nvidia Corp crumble 17 percent, wiping more than half a trillion dollars off its market capitalization.

U.S equity future edged higher in early Wednesday trading, while the dollar extended gains and Treasury yields dipped, as investors looked for clarity on two key issues from today's Federal Reserve rate decision and fourth quarter earnings updates from three megacap tech giants.

Japan's Nikkei snapped a three-day losing run on Wednesday, tracking Wall Street's recovery from a sell-off triggered by Chinese startup DeepSeek's AI model launch, with the focus now on major U.S. earnings and the Federal Reserve's rate decision.