Most Asian stock indices rose on Friday after softer-than-expected U.S. inflation data warranted a slightly less hawkish interest rate outlook, and China’s lifting of some COVID-19-related restrictions led local markets to surge.

On Friday, Chinese authorities shortened quarantine times for residents and inbound travelers, and lifted a fine for airlines that bring in infected passengers.

While the government remains strict on COVID-19 as the country faces its worst outbreak of the virus since May, it also stressed the need to minimize the economic impact of its strict “zero tolerance for COVID-19” policy.

China’s blue-chip Shanghai Shenzhen CSI 300 index jumped 3.4 percent and the Shanghai Composite index added 2.4 percent.

Hong Kong’s Hang Seng Index was Asia’s best performer on Friday, rising more than 7% after the government also said it would ease COVID-19-related travel restrictions for residents and international tourists.

Chinese indices have been rising in recent weeks amid rumors on social media about a possible change in the government’s stance on the “zero-tolerance COVID-19” policy. The policy has brought China’s economic growth to a halt this year and has severely dampened investor sentiment towards the country, hurting its market.

The rest of Asia’s stock indexes rose, with high-tech exchanges rising the most, as more modest-than-expected U.S. inflation data reinforced expectations that the Federal Reserve will raise interest rates at a slower pace in coming months.

Taiwan’s index rose 3.7%, also helped by hopes for a revival of business activity in China, while South Korea’s KOSPI index added 3.4%. Japan’s Nikkei 225 index also gained 3% and India’s blue-chip index Nifty 50 rose 1.6%.

The market is now pricing in a probability of over 80% that the Fed will raise rates relatively less, by 50 basis points in December, amid signs that this year’s sharp rate hike is already taking its toll.

That view was reinforced by a number of U.S. Fed members this week who said they supported a smaller interest rate hike to protect economic growth. But with U.S. inflation still well above the Fed’s 2% annualized target, the central bank is expected to keep raising the interest rate until there are clearer signs that inflation is easing.

Still, most risk-focused indexes rose on the prospect of a slower interest rate hike, given that a rate hike has been the biggest factor weighing on the risk-oriented market this year. Wall Street indexes also rose the previous day, with technology stocks leading the way.

Australia’s ASX 200 index jumped 2.8%, with shares in major mining companies benefiting most from hopes of a resumption in China, their biggest market.