Japan’s top currency official delivered his most robust salvo of warnings in months against speculative moves in the foreign exchange market as the yen continues to hover near a 2022 intervention level.
Equities in Asia backtracked Friday after US stocks hit yet another record, and as investors parsed economic data for signals on interest-rate trajectories around the world.
Japan’s consumer inflation accelerated to the quickest pace in four months, an outcome that will keep markets focused on whether the Bank of Japan might follow its first interest rate hike since 2007 with an encore later this year.
Federal Reserve policymakers are largely sticking to their path of interest-rate cuts for now after hitting a bump on the road to low and steady inflation.
Japan’s exports rose 7.8% in February, as shipments continued to expand in cars and electrical machinery, according to government data released Thursday.
As Chinese stocks bottom out after months of selling, investors are sifting through earnings for signs of a sustainable recovery. The early evidence is less than convincing.
The yen fell to the weakest level since 2008 against the euro on speculation the Bank of Japan will keep its monetary policy accommodative even after it ended the world’s last negative-interest-rate policy on Tuesday.
Two- and five-year Treasury yields climbed to the highest levels this year as swaps traders and economists at Goldman Sachs Group Inc. forecast fewer Federal Reserve interest-rate cuts.
Asian equities slipped before a Bank of Japan policy decision where authorities are likely to bring an end to the world’s last negative rates regime.
Investors may glean more on the Federal Reserve’s resolve to ease and how close Japan is to finally exiting negative interest rates as central banks set policy for almost half the global economy.
Asian stocks climbed, led by Japanese shares into a week that includes policy decisions from the Bank of Japan and Federal Reserve which will likely set the near-term direction for global markets.
China’s economic activity was likely mixed at the start of the year with property remaining a major drag, raising doubts about the nation’s ability to gain momentum and hit an ambitious growth target of around 5%.
Japan’s largest union group will release the most closely scrutinized wage figures in decades on Friday, numbers that may be strong enough to nudge the central bank toward raising interest rates for the first time since 2007.
Asian equities traded within tight ranges after a drop in technology stocks led to small declines in US shares.
The Bank of Japan’s steady march toward raising interest rates for the first time since 2007 begs the question of who will win and who will lose after years of massive stimulus and ultra-low borrowing costs.
