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By Ankur Banerjee
SINGAPORE, April 28 (Reuters) - Asian stocks rose on Friday as strong corporate earnings lifted sentiment despite lingering worries over economic weakness, while the yen dipped after the Bank of Japan kept rates ultra-low even as it announced a broad review of monetary policy.
MSCI's broadest index of Asia-Pacific shares outside Japan was 0.51% higher but remained on course to end the month lower.
Japan's Nikkei jumped 1% while the yen weakened 0.72% to 134.92 to the dollar and Japanese government bonds rallied.
The BOJ kept its loose monetary settings unchanged but revamped its guidance on the future path of policy, and announced a "broad-perspective" review with a planned time frame of around one to one-and-a-half years.
The central bank in its first meeting under new Governor Kazuo Ueda modified its forward guidance by removing a pledge to keep interest rates at "current or lower levels."
Aninda Mitra, head of Asia macro and investment strategy at BNY Mellon Investment Management, said the BOJ policy decision was not entirely a surprise considering the comments from the new governor before the meeting.
"What I was taken aback by was the amount of time they've given themselves to do the comprehensive review," he said, noting he thought a review would take another quarter or be completed by the end of the year.
"It does seem like the YCC (yield curve control) is here to stay for a while."
Markets will now focus on Ueda's post-meeting news conference for clues on how soon the BOJ could phase out stimulus.
Data earlier on Friday showed core consumer inflation in Japan's capital hit 3.5% in April, beating expectations and exceeding the BOJ's 2% target.
"As the inflation numbers head higher in Japan, I suspect the markets will start to get more focused on anticipating some sort of a tightening," said Shane Oliver, chief economist at AMP in Sydney.
Futures indicated European stocks were set to open higher, with Eurostoxx 50 futures up 0.44%, German DAX futures up 0.36% and FTSE futures up 0.35%.
E-mini futures for the S&P 500 eased 0.11% after Amazon.com Inc signalled its cloud growth would slow further as its business customers braced for turbulence and clamped down on spending.
Upbeat results from bellwether tech firms, including Meta Platforms Inc, Microsoft Corp and Alphabet Inc have helped lift U.S. stocks higher this week.
"As earnings season accelerates, macro and geopolitical clouds are receding, and company fundamentals are increasingly driving the market," said Lewis Grant, senior portfolio manager for global equities at Federated Hermes.