U.S. Stock Futures Edge Higher as Micron Earnings Boost AI Sentiment Ahead of CPI Data 
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
New Zealand Business Confidence Hits 30-Year High as Economic Outlook Improves 
Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
Singapore Growth Outlook Brightens for 2025 as Economists Flag AI and Geopolitical Risks 
Yen Near Lows as Markets Await Bank of Japan Rate Decision, Euro Slips After ECB Signals Caution 
Asian Currencies Slip as Dollar Strengthens; Indian Rupee Rebounds on Intervention Hopes 
Trump Orders Blockade of Sanctioned Oil Tankers, Raising Venezuela Tensions and Oil Prices 
Chinese Robotaxi Stocks Rally as Tesla Boosts Autonomous Driving Optimism 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
Asian Stocks Edge Higher as Tech Recovers, U.S. Economic Uncertainty Caps Gains 
Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
Canada Signals Delay in US Tariff Deal as Talks Shift to USMCA Review 
Silver Prices Hit Record High as Safe-Haven Demand Surges Amid U.S. Economic Uncertainty 
U.S. Stock Futures Slip After CPI-Fueled Rally as Markets Weigh Economic Uncertainty 
Japan’s consumer price inflation remained largely steady in November, reinforcing expectations that the Bank of Japan (BOJ) will proceed with a long-anticipated interest rate hike as it seeks to control persistent price pressures and support the yen. Government data released on Friday showed that headline consumer price index (CPI) inflation eased slightly to 2.9% year-on-year, down from 3% in October, but stayed well above the central bank’s 2% annual target.
Core CPI inflation, which excludes volatile fresh food prices and is closely watched by policymakers, held steady at 3%, in line with market expectations. Meanwhile, a narrower measure of underlying inflation that strips out both fresh food and energy prices edged down marginally to 3% from 3.1%. Despite this slight cooling, the figure remains significantly above the BOJ’s inflation goal, highlighting ongoing price stickiness in the Japanese economy.
The inflation data was published just hours before the conclusion of a BOJ policy meeting, where markets widely expect a 25 basis point interest rate hike. Analysts argue that persistent underlying inflation, particularly driven by food prices, gives policymakers sufficient justification to tighten monetary policy further. Food costs have been a major contributor to Japan inflation in 2024, fueled by rice supply shortages and higher import prices linked to a weak yen and global commodity pressures.
Capital Economics said the latest CPI figures effectively clear the path for the BOJ to raise rates. The firm expects inflation excluding fresh food and energy to remain above the BOJ’s target for the foreseeable future and potentially exceed the central bank’s own forecasts for the current and next fiscal years.
However, views remain divided on how far BOJ interest rates will ultimately rise. While Capital Economics projects rates could climb to 1.75% by 2027, broader market consensus suggests the central bank may slow or pause its tightening cycle after one additional 25 basis point hike in 2026. This caution reflects concerns over Japan’s sluggish economic growth and a relatively loose fiscal stance under Prime Minister Sanae Takaichi.
Overall, November’s CPI data underscores the challenge facing the BOJ as it balances sticky inflation, a fragile economy, and currency weakness in shaping its monetary policy outlook.
