Japan Signals Readiness to Intervene as USD/JPY Nears 161 Amid Yen Weakness 
Russia Stocks End Flat as MOEX Index Hits New 52-Week Low; Gold Falls and Oil Mixed 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
Australia Eases Capital Gains Tax Reforms to Support Small Businesses and Startups 
Yen Near 40-Year Lows Despite BOJ Rate Hike, Markets Brace for Possible Intervention 
China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says 
Asian Currencies Steady as Dollar Holds Firm Ahead of Fed Decision and US-Iran Deal Details 
Europe EV Demand Surges as Fuel Prices Rise Amid Iran Conflict 
Japan Inflation Stays Below BOJ Target Despite Rate Hike and Rising Energy Cost Risks 
Gold Prices Rebound on U.S.-Iran Peace Deal Optimism Despite Fed Rate Hike Signals 
Asian Stocks Surge as Oil Prices Fall and Strong US Dollar Weighs on Markets 
Canada Imposes 10% Tariff on Canned Vegetable Imports to Protect Domestic Industry 
Oil Prices Slide as U.S.-Iran Deal and Hormuz Reopening Ease Supply Concerns 
Asian Stocks Rally as Japan and South Korea Reach Record Highs on US-Iran Peace Deal 
Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead 
Oil Prices Steady as U.S.-Iran Truce Uncertainty and Middle East Tensions Keep Markets on Edge 
Asian share markets rebounded on Friday, tracking a recovery on Wall Street as a turnaround in technology stocks boosted global risk sentiment. Investors, however, remained cautious ahead of a widely anticipated interest rate hike from the Bank of Japan (BOJ), a move that could trigger volatility in currencies and bond markets.
Market sentiment was also supported by a surprise slowdown in U.S. consumer price inflation, which eased to 2.7%. While the softer inflation print briefly lifted confidence, analysts warned the data may be distorted by the recent U.S. government shutdown and should not be taken at face value. As a result, expectations for Federal Reserve rate cuts shifted only slightly, with markets pricing in a 27% chance of a cut in January and a 58% probability by March.
Attention in Asia remained firmly on Japan, where markets are pricing in around a 90% chance that the BOJ will raise interest rates by 25 basis points to 0.75%. Investors currently expect only one additional rate hike to 1.0% in 2026, but any signal of faster policy normalization could strengthen the yen while adding pressure to Japanese government bonds. Japan’s latest data showed core consumer inflation holding steady at 3.0% in November, well above the BOJ’s 2% target.
Japan’s Nikkei index rose 0.6%, while South Korean shares climbed 1.2%, supported by strong earnings from chipmaker Micron Technology. The broader MSCI Asia-Pacific index outside Japan gained 0.2%. U.S. stock futures were flat after overnight gains, and Treasury yields steadied near recent highs.
In global markets, central banks sent mixed signals. The Bank of England cut rates by a narrow margin, while the European Central Bank maintained a more hawkish stance, dampening expectations for further easing. Currency markets were largely stable, with the dollar steady against the yen.
Commodities were mixed, as gold prices hovered below recent highs, oil edged higher on geopolitical risks, and industrial metals showed continued demand.
