Asian Stocks End Strong Quarter as Dollar Surges, Yen Hits 40-Year Low Ahead of US Jobs Data 
Yen Falls to 40-Year Low as Markets Watch Japan Intervention and U.S. Jobs Report 
Dollar Slips Ahead of Key U.S. Jobs Data as Fed Rate Outlook, ECB, and Iran Talks Shape Forex Markets 
ECB Set to Raise Interest Rates as Energy Shock Fuels Eurozone Inflation Concerns 
BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
RBI Hits Pause as Geopolitical Storm Clouds Gather 
Wall Street Futures Rise Ahead of JOLTS Data, Nike Earnings, and U.S.-Iran Talks 
Taiwan Central Bank Likely to Keep Interest Rates Unchanged Through 2027 
Supreme Court Backs Lisa Cook, Defends Federal Reserve Independence Against Trump Firing Attempt 
Asian Currencies Stay Range-Bound as Investors Eye China Data, RBNZ Outlook and U.S.-Iran Ceasefire 
Economic pessimism has set in – but there are reasons for Australians to be hopeful 
Asian Currencies Slip as Dollar Holds Firm, Yen Near Four-Decade Low Ahead of Fed, Jobs Data 
Tokyo’s consumer price index (CPI) inflation accelerated in January, reaching a near two-year high as strong private spending sustained price growth. The headline CPI rose 3.4% year-on-year, up from 3% in December, marking the highest level since April 2023.
Core CPI, which excludes fresh food prices, increased 2.5% year-on-year, in line with expectations and up from 2.4% in the previous month. A further core measure, stripping out both fresh food and energy, rose 1.9%, edging closer to the Bank of Japan’s (BOJ) 2% target.
Tokyo CPI serves as a leading indicator for nationwide inflation, suggesting price pressures remain strong. This trend supports the BOJ’s recent shift toward tighter monetary policy. Last week, the central bank raised interest rates by 25 basis points—its third hike since beginning a tightening cycle in early 2024.
The BOJ anticipates a “virtuous cycle” where rising wages fuel private consumption, keeping inflation near its target. However, further rate hikes are unlikely until mid-2025 as the central bank assesses economic conditions and political developments.
Upcoming Shunto wage negotiations in March and Japan’s upper house elections in July will be key factors in shaping monetary policy.
With inflation steadily rising, markets are watching for signs of additional BOJ action in the coming months.
