Asian stock markets increased early Friday thanks to stronger U.S. economic growth figures. Oil set to end the week flat as little movement shown.

The majority of Asian stock markets increased on Friday as demand for risky assets increased thanks to stronger than anticipated U.S. economic growth figures.

Data released overnight revealed that the largest economy in the world expanded more than anticipated in the fourth quarter, allaying some fears of an impending recession. Sharp profits were thus produced on Wall Street, which then spread to Asia.

As local producer price index inflation appeared to have slowed over the fourth quarter, which may eventually result in softer consumer prices, Australia's ASX 200 index increased by 0.5%.

After statistics revealed that inflation in the nation's capital increased more than anticipated in January, Japan's Nikkei 225 index lagged its counterparts for the day, gaining less than 0.1%. The data often predicts an identical trajectory in the national CPI inflation rate, which is now running at a 41-year high and far higher than the Bank of Japan's annual 2% objective.

Uncertainty over the BOJ's monetary policy goals has dimmed the outlook for Japanese markets. Although the BOJ's ultra-accommodative posture is likely to stop eventually due to the country's growing inflation, traders are uncertain of the exact timing of this change after the BOJ surprised the market in its January meeting.

Due to caution around an approaching OPEC+ panel meeting and more clues on the U.S. economy provided by a reading on the Federal Reserve's favoured inflation measure, oil prices made little movement on Friday and were expected to close the week flat.

The Joint Ministerial Monitoring Committee (JMMC), an organisation made up of ministers from Algeria, Kuwait, Venezuela, Russia, and Oman, is scheduled to electronically convene the next week. The panel can decide on the oil production from the panel members as well as call for a full meeting of the Organization of Petroleum Exporting Countries and Allies (OPEC+).

Given that it would result in a weaker currency and less pressure on the largest economy in the world, the Fed's plans to raise interest rates may be delayed or even abandoned, which would be favourable for the oil prices.

The Fed's preferred inflation measure, personal consumption inflation data, is coming later on Friday and is supposed to provide more insight into the direction of inflation and monetary policy.

On the assumption that demand will increase as China's economy recovers, crude prices have risen in recent weeks. Most anti-COVID rules were eased early this year by the nation, which is currently enjoying a week-long Lunar New Year break. This is projected to result in record-high oil consumption this year.

But because China is still dealing with its worst COVID-19 pandemic to date, investors are still unsure of when a recovery would occur.

(Investing.com, Reuters.com)