Argentina Congress Approves 2026 Budget Under Milei, Marking First Legislative Passage Since 2023 
BOJ Signals Further Rate Hikes as Inflation and Weak Yen Remain in Focus 
Taiwan Stock Market Ends Higher as Semiconductor and Energy Shares Lead Gains 
China to Tighten Crude Steel Output Controls and Export Regulation Through 2030 
U.S. Stocks Hold Steady After Christmas as Trading Volumes Stay Light 
Hong Kong Home Prices Rise for Sixth Straight Month as Rate Cuts Lift Market Sentiment 
Japan Approves Record ¥122.3 Trillion Budget as Takaichi Seeks Fiscal Balance 
BOJ Governor Signals Gradual Rate Hikes as Japan’s Inflation Nears 2% Target 
Russian Stocks End Mixed as MOEX Index Closes Flat Amid Commodity Volatility 
China’s Iron Ore Buyer Pressures Mining Giants as New Supply Shifts Market Power 
U.S. Stock Index Futures Steady Ahead of Holiday-Shortened Trading Week 
Lebanon Cabinet Approves Financial Gap Law to Tackle Ongoing Economic Crisis 
Oil Prices Rise on Venezuela Sanctions and Nigeria Airstrikes Despite Annual Losses 
Gold and Silver Hit Record Highs as Safe-Haven Demand Surges Amid Global Uncertainty 
China Industrial Profits Slump Signals Need for More Economic Stimulus 
The Japanese yen regained some strength on Monday after suffering a sharp decline late last week, as investors reassessed the outlook for interest rate hikes in Japan and the likelihood of government intervention during thin end-of-year trading. Currency markets remained cautious, with traders closely watching signals from the Bank of Japan (BOJ) and global geopolitical developments.
According to a summary of opinions released after the BOJ’s December policy meeting, policymakers debated the need to continue raising interest rates. The central bank recently lifted its policy rate to 0.75%, the highest level in 30 years, up from 0.5%. Despite the increase, many board members noted that Japan’s interest rates remain deeply negative in inflation-adjusted terms, suggesting further tightening could be necessary. Expectations around future BOJ rate hikes have become a key driver for the yen’s performance.
Japan’s Finance Minister Satsuki Katayama reiterated last week that authorities have the freedom to respond to excessive currency moves, reinforcing the possibility of yen intervention. These warnings have helped limit aggressive dollar-yen positions, although broader pessimism toward the yen persists. Market participants are increasingly expressing bearish views through cross-currency trades, particularly against higher-yielding currencies such as the Australian dollar. Analysts note that the yen’s traditional role as a safe-haven currency is being questioned amid shifting global monetary dynamics.
The yen strengthened about 0.3% to around 156 per dollar after falling roughly 0.5% on Friday. The U.S. dollar index edged lower, while the euro gained modestly, supported by optimism after U.S. President Donald Trump signaled progress toward a potential peace agreement between Russia and Ukraine following talks with Ukrainian President Volodymyr Zelenskiy.
Attention now turns to the release of minutes from the U.S. Federal Reserve’s December meeting, which could provide further insight into the future path of U.S. interest rates. Elsewhere, the Australian and New Zealand dollars were largely unchanged. In the cryptocurrency market, bitcoin and ether posted moderate gains, reflecting a cautiously positive risk sentiment.
