Recent data show Japanese workers are gaining better wages and are generally set to receive solid pay raises in their upcoming annual union negotiations
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Setting rates in Japan will become a delicate balancing act if tariffs materialize.
The Bank of Japan holds its first policy meeting of the year next week and the outcome will be announced days after the inauguration of U.S. President-elect Donald Trump.
Asian markets rose Friday after a record day on Wall Street in response to Donald Trump's tax-cut pledge, while the yen weakened slightly ahead of an expected interest rate hike by the Bank of Japan later in the day.
Asian shares advanced Friday after U.S. stocks rose to a record and the Bank of Japan raised its key lending rate.
Japan’s 40-year government bond yield reached an all-time high, amid a global debt selloff and speculation that the Bank of Japan may hike interest rates in the future.Most Read from BloombergThese Homes Withstood the LA Fires.
Our monetary policy outlook has somewhat changed since our last major international forecast update. We now believe the Fed will cut interest rates less aggressively, while the Bank of Canada and Swiss National Bank can ease quicker.
The benchmark S&P 500 was down 1.6 per cent to 6,003.04, dragged down by technology stocks. AI chipmaker Nvidia was down nearly 14 per cent to $123.02
The Mexican peso, a barometer of tariff worries, weakened 1.6% to 20.609 per dollar. The Canadian dollar was down 0.33% versus the greenback at 1.44 per dollar. Trump said last week he may impose duties on products from Canada and Mexico from Feb. 1.
Shares were mixed in thin Asian trading on Monday after U.S. stocks edged back from their all-time high. Oil prices fell and U.S. futures sank, while Chinese shares shed some of their early gains after a survey of manufacturers showed export orders dropping to a five-month low.