Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Japan’s economy expanded at a slower pace in Q4 2024 than initially estimated, as sluggish consumer spending offset gains in exports and capital expenditure. Government data released Tuesday showed GDP grew 2.2% year-on-year, down from the previous estimate of 2.8%, but still higher than Q3’s 1.2% growth.
On a quarterly basis, GDP growth was revised to 0.6% from 0.7%, outpacing Q3’s 0.3%. The downward revision was driven by flat private consumption, revised from an initial 0.1% growth, and marking a sharp slowdown from Q3’s 0.7% increase. Meanwhile, capital expenditures saw a slight upward revision to 0.6%, and exports held steady at 0.7% quarter-on-quarter.
The Q4 GDP price index was also revised higher to 2.9% from 2.8% year-on-year, indicating stronger-than-expected inflation. Consumer spending, a key driver of Japan’s 2024 economic growth, cooled as inflation pressured household finances.
January data showed a steeper-than-expected drop in household spending, signaling potential weakness in Q1 growth. However, upcoming spring wage negotiations are expected to support earnings and boost private spending.
Despite the slowdown, Japan’s economy remains resilient, giving the Bank of Japan more room to continue its rate hikes. Following a 25 basis point increase in January, the BOJ is expected to hold rates steady next week. However, if wage growth remains strong, another rate hike could come as early as May.
As inflation stays sticky and the economy maintains growth, Japan’s monetary policy outlook remains in focus. Investors will be watching closely for signals from the BOJ on future rate moves.
