Global markets-Stocks rise as oil dips, yen wobbles ahead of BOJ

The Bank of England warned on Thursday it may have to hike if the Middle East war drags on while the Federal Reserve raised rates on Wednesday for the first time in three years and flagged more in the coming months. The European Central Bank last week also cautioned the need for further tightening as it raised rates.

"If bonds reverse and yields push higher again, volatility could quickly return," said Chris Weston, head of research at Pepperstone. "For now, though, the buyers have regained some control, and the price action suggests the post-Fed risk-off move has lost momentum."

Asian stocks rose and the dollar held its ground on Friday as investors contended with global policymakers ramping up efforts to rein in inflation, with a dip in oil prices improving sentiment ahead of an expected rate hike from the Bank of Japan.