Asian stocks rose on Friday, with several reaching four-month highs, as two of the largest central banks of the region maintained dovish signals regarding their benchmark interest rates. 

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.9% higher and on course for a 3% gain in the week, its best weekly performance since January.

Japan’s Nikkei 225 index rose 0.6%. At the same time, the broader TOPIX cut earlier losses and was trading 0.25% higher.

China’s benchmark CSI 300 Index (.CSI300) was 0.59% higher, and Hong Kong’s Hang Seng Index (.HSI) gained 1.38% on Friday, extending gains into a second straight session.

India’s Nifty 50 and BSE Sensex 30 indexes opened about 0.4% higher, while South Korea’s KOSPI added 0.5%.

The Bank of Japan (BOJ) maintained its ultra-easy monetary policy, and the People’s Bank of China (PBOC) began trimming borrowing costs. 

The BOJ capped off a busy week for central banks by pledging to “patiently” maintain significant stimulus to guarantee Japan meets its 2% inflation objective while raising wages. The PBOC slashed short and medium-term interest rates this week, and its benchmark loan prime rate is primarily expected to be trimmed on Tuesday. 

However, larger gains were restrained as markets remained on edge as US economic data fueled views that the Federal Reserve is nearing the end of its rate-hiking cycle. The Federal Reserve held interest rates unchanged this week but warned of at least two more hikes this year to combat excessive inflation.