In Singapore, Asian markets were influenced by a dip in Chinese markets on Thursday and were struggling to maintain momentum from the previous Wall Street surge. Despite this, investors were optimistic about the possibility of the Federal Reserve implementing two interest rate cuts by the end of the year.

Following a widely anticipated decision on Wednesday, the Fed kept rates unchanged but maintained its forecast for two quarter-point rate reductions by the year's end. While policymakers adjusted their inflation forecast for the year upwards, they revised their economic growth outlook downwards due to concerns over President Donald Trump's tariff policies.

Investors found comfort in the Fed's policy rate expectations and Chair Jerome Powell's assurance that tariff-related inflation would be temporary and confined mostly to this year. This led to stock market increases, a decline in U.S. Treasury yields, and a weaker dollar.

Australian shares rose by 1%, and U.S. futures continued to climb after the closing of the trading session. Nasdaq futures increased by 0.4%, S&P 500 futures by 0.3%, and EUROSTOXX 50 futures by 0.1%. With Japanese markets closed for a holiday, Nikkei futures edged up by 0.2%.

Chris Weston, head of research at Pepperstone, highlighted the uncertainty surrounding the Fed's future moves, emphasizing that the central bank's actions are heavily influenced by economic data and market forces.

Gold prices reached a new high of $3,055.96 per ounce, benefiting from the expectation of further Fed easing later in the year. U.S. Treasury trading was closed due to the Japanese holiday, but futures suggested lower yields.

The weakening dollar, down 0.27% against the yen at 148.25, and the stability of the euro near a five-month peak at $1.0908 reflected the market's reaction. Sterling also hit a four-month high at $1.3015 early in the session ahead of the Bank of England's policy decision, which is anticipated to maintain current interest rates.

Despite this positive sentiment, there was no widespread Asian market rally, with MSCI's broadest index of Asia-Pacific shares outside Japan fluctuating between gains and losses to end marginally 0.1% higher.