(Updates after BOJ rate hike)

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Dollar set for worst weekly loss in two months

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Chinese stocks get a boost from Trump comments

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Yen volatile after expected rate hike from BOJ

By Ankur Banerjee

SINGAPORE, Jan 24 (Reuters) - Global shares rose on

Friday buoyed by the prospect of lower U.S. interest rates and a

U.S.-China trade deal following comments from President Donald

Trump, while the yen was choppy 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 155.45 per dollar in

volatile trading, near the one-month high of 154.78 it touched

earlier this week, while the Nikkei rose 0.3%.

"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%."

Ueda is scheduled to hold a press conference at 3:30 p.m.

(0630 GMT) to explain the policy decision.

Kristina Clifton, economist at the Commonwealth Bank of

Australia, said there is a good chance the BOJ will take a

dovish tone after the rate hike as there is still a high risk of

economic and market disruptions from U.S. policy.

Investors though remain fixated on Trump and his polices.

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, and warned of tariffs on

exports to the United States.

In an interview with Fox news, Trump said his recent

conversation with President Xi Jinping was friendly, adding 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."

Those comments sent China's CSI300 blue chip index

0.6% and Hong Kong's Hang Seng index 1.7% higher. The

Australian and New Zealand dollars, as well as the yuan, rose on

signs of a softer stance on tariffs from Trump.

That left the MSCI's broadest index of Asia-Pacific shares

outside Japan 0.6% higher.

Trump's comments on wanting lower interest rates moved U.S.

markets, with the S&P 500 hitting a record high and the

dollar on the defensive as investors remain 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."

With no new details on Trump's tariff plans, the uncertainty

has weighed on bond prices. 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 4.621% in

Asia hours, below last week's 14-month high of 4.809%.

The European Central Bank and the Federal Reserve 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 has said 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.

The U.S. dollar index, which measures the currency

against six others, languished near a two-week low of 108.13 and

was poised for a more than 1% drop for the week, its weakest

performance in two months.

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 fell 0.56% to $77.85 a barrel.

U.S. West Texas Intermediate crude (WTI) was down 0.51%

at $74.24.