SINGAPORE (Reuters) -Global shares rose on Friday buoyed by the prospect of a softer stance on tariffs on China and lower U.S. rates following comments from President Donald Trump, while the yen firmed after the Bank of Japan delivered a widely expected rate hike.

The BOJ raised interest rates to their highest since the 2008 global financial crisis, with attention now shifting to any clues from BOJ Governor Kazuo Ueda in his briefing on the pace and timing of further increases.

The yen strengthened to 154.86 per dollar in volatile trading, just shy of the one-month high of 154.78 it touched earlier this week, while the Nikkei was flat.

"The hike may have been expected but, in what feels like the first time in a very long time, there were no major downgrades to their economic outlook," said Matt Simpson, a senior market analyst at City Index.

"This keeps the door open to another 25 basis point hike by the year end, and rates to sit at a whopping 0.75%." 

Investors though remain fixated on Trump and his polices, with his latest comment suggesting a softer approach to tariffs on China, leading to a relief rally in non-dollar currencies and Chinese shares. European markets are set to join the party with EUROSTOXX 50 futures up 0.48%.

Trump in an interview with Fox news said his recent conversation with President Xi Jinping was friendly and he thought he could reach a trade deal with China.

"But we have one very big power over China, and that's tariffs, and they don't want them, and I'd rather not have to use it, but it's a tremendous power over China," he said.

Those comments sent China's CSI300 blue chip index up 0.8% and Hong Kong's Hang Seng index 2% higher. The Australian and New Zealand dollars, as well as the yuan, rose on signs of a softer stance on tariffs from Trump. [FRX/] [.SS]

Earlier Trump told business leaders at the World Economic Forum in Davos, Switzerland, on Thursday that he wants to lower global oil prices, interest rates and taxes.

Trump's comments on wanting lower interest rates moved U.S. markets, with the S&P 500 hitting a record high, although investors remained cautious about the president's next moves on trade and tariffs.

"No politician advocates for higher rates and he (Trump) has always put himself out there as a low rates guy," said Prashant Newnaha, a senior Asia-Pacific rates strategist at TD Securities. "Expect the president to become more vocal and critical of the Fed."

Treasury yields have been on the rise as bond investors brace for eventual tariffs that may stoke inflation. The U.S. 10-year Treasury yield was at 4.627% in Asia hours, below last week's 14-month high of 4.809%. [US/]

The European Central Bank and the Federal Reserve are due to meet next week as policymakers digest early moves of the Trump administration.

Currency markets in general have been tentative after a volatile few sessions since Trump's return to the White House, driven by his pronouncements on tariffs.

Trump said earlier this week he plans to impose duties on imports from Mexico and Canada from Feb. 1 and that he will apply tariffs on imports from the European Union.

But the comments on Friday pushed the U.S. dollar index, which measures the currency against six others, to a one-month low of 107.71. The index was poised for a 1.5% drop for the week, its weakest performance in two months. [FRX/]

Oil prices remained well below $80 a barrel, under pressure after Trump said he will be asking Saudi Arabia and OPEC to bring down oil prices.

Brent crude futures was flat at $78.27.85 a barrel. U.S. West Texas Intermediate crude (WTI) was little changed at $74.59.[O/R]