Asian equities surged on Friday as solid corporate profits bolstered morale amid economic stagnation. At the same time, the yen fell as the Bank of Japan held rates ultra-low and promised a thorough review of monetary policy.

MSCI’s broadest Asia-Pacific share index outside Japan (.MIAPJ0000PUS) rose 0.45% but remained on track to conclude the month down.

Japan’s Nikkei (.N225) rose 1% as the yen fell 0.60% to 134.76 per dollar, and government bonds rose.

The BOJ maintained its easy monetary policy but planned a “broad-perspective” assessment.

In its first meeting under new governor Kazuo Ueda, the central bank removed a promise to hold interest rates at “current or lower levels.”

“The wait for the announcement sparked quite a bit of volatility in the yen and rising expectations that we will get a tweak,” said Saxo Markets Singapore market analyst Charu Chanana.

“But eventually, even their (BOJ) announcement of a policy review came with a 1-1.5 year timespan which was longer than what market expected.”

Meta Platforms Inc (META.O), Microsoft Corp (MSFT.O), and Alphabet Inc (GOOGL.O) reported strong earnings overnight, sending U.S. markets higher.

“As earnings season accelerates, macro and geopolitical clouds are receding, and company fundamentals are increasingly driving the market,” said Federated Hermes senior global equity portfolio manager Lewis Grant.

“Investor sentiment remains as fragile as the global economy and earnings season provides much needed visibility on firm health.”

E-mini futures for the S&P 500 fell 0.14% after Amazon.com Inc (AMZN.O) said its cloud growth would stall as business clients braced for instability and cut spending.

Eurostoxx 50 futures rose 0.46%, German DAX futures rose 0.40%, and FTSE futures rose 0.34%, indicating stronger European market openings.

China equities rose 0.87%. However, political tensions and global economic concerns have recently dampened market optimism.

Even though price growth was more than predicted, the U.S. economy slowed in the first quarter, according to overnight data.

National Australia Bank analyst Taylor Nugent called the first-quarter figures “an unhappy combination” of less growth and higher prices.

The Federal Reserve’s core PCE price index rose 4.9% after rising 4.4% the quarter before.

Initial claims for unemployment benefits declined, indicating labor market tightness, which drives inflation.

“Stubborn inflation data gives the Fed little breathing room to take heed of nascent slowing in activity and the labour market should it continue to develop,” Nugent added.

The CME FedWatch tool suggested an 85% possibility of a 25-basis-point Fed rate hike next week. Traders anticipate the move to end the Fed’s quickest monetary policy tightening cycle since the 1980s.

After posting their greatest intraday gain since March on Thursday, 10-year Treasury notes yielded 3.511%, down 1.7 basis points.

30-year Treasury bond rate fell 1.3 basis points to 3.743%.

The dollar index tracks six currencies, increased 0.227%, while the euro fell 0.16% to $1.1009.

U.S. crude increased 0.54% to $75.16 per barrel, while Brent jumped 0.66% to $78.89.