Global stocks were higher on Friday, as Big Tech gains lifted Wall Street shares, while Japan's yen sank to a 34-year low after the Bank of Japan (BOJ) kept monetary policy loose.

MSCI's gauge of stocks across the globe rose 6.80 points, or 0.90%, to 762.39 on tech sector optimism, following robust results from Alphabet and Microsoft.

US data also boosted sentiment, with the personal consumption expenditures (PCE) price index up 0.3% in March, in line with estimates by economists polled by Reuters. In the 12 months through March, PCE inflation advanced 2.7% against expectations of 2.6%.

The S&P 500 and the Nasdaq registered their biggest weekly percentage gains since early November 2023.

The Dow Jones Industrial Average rose 153.86 points, or 0.40%, to 38,239.66, the S&P 500 gained 51.54 points, or 1.02%, to 5,099.96, and the Nasdaq Composite gained 316.14 points, or 2.03%, to 15,927.90.

Europe's benchmark stock index had its biggest daily gain in more than three months, closing up 1.2%, on gains in banking and industrial stocks. The technology sector got a boost from upbeat results from US megacaps.

The dollar hit 158.275 against the yen, the highest since June 1990.

World equities were poised to finish the month lower, as hopes of rapid Federal Reserve (Fed) rate cuts receded following a series of US inflation readings.

The BOJ kept interest rates around zero in its policy meeting, despite forecasting inflation of around 2% for three years.

Markets are braced for Tokyo authorities to prop up the currency, in what would be an unconventional and politically tough decision. BOJ governor Kazuo Ueda said on Friday that exchange-rate volatility could significantly impact the economy.

US Treasury Secretary Janet Yellen told Reuters on Thursday that currency intervention is acceptable only in "rare" circumstances, and that market forces should determine exchange rates.

Yellen also said US economic growth is likely stronger than suggested by weaker-than-expected data on first-quarter output.

"The stall-out of inflation's return to 2% in the first quarter is still a disappointment," Bill Adams, the chief economist for Comerica Bank in Dallas, said in a market note.

"When the Fed meets next week, they are almost certain to say that the first quarter’s economic data don't hit their high bar to begin cutting interest rates."

The yen was trading about 40% below its fair value, Pictet Asset Management chief strategist Luca Paolini said.

"We underestimate the potential for something to go very wrong when you have a currency that is totally misaligned with [economic] fundamentals," he said.

"The sooner they hike rates, the better."

Yields fall

Longer-dated US Treasury yields fell after data showed inflation gains in March in line with economists’ expectations.

The yield on benchmark US 10-year notes fell 4.3 basis points to 4.663%, from 4.706% late on Thursday. Bond yields rise as prices fall.

The two-year note's yield, which typically moves in step with interest rate expectations, fell 0.5 basis point to 4.9934%, from 4.998%.

Traders now expect the Fed to lower its main funds rate, currently at a 23-year high of 5.25% to 5.5%, by just 36 basis points this year, with some fearing a further hike.

Eurozone government bond yields fell as market expectations for cumulative European Central Bank rate cuts this year dropped way below 75 basis points on the back of strong US economic data.

MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.75% higher at 535.58, while Japan's Nikkei rose 306.28 points, or 0.81%, to 37,934.76.

Spot gold added 0.21% to US$2,336.79 an ounce. US.gold futures settled 0.2% higher at US$2,347.20.

Brent crude futures settled up 49 cents, or 0.55%, at US$89.50 a barrel. US West Texas Intermediate crude futures settled up 28 cents, or 0.34%, at US$83.85 a barrel.

  - Reuters