U.S. Dollar Steadies Near October Lows as Rate Cut Expectations Keep Markets on Edge 
New Zealand Budget Outlook Shows Prolonged Deficits Despite Economic Recovery Hopes 
Oil Prices Rebound as Trump Orders Blockade of Sanctioned Venezuelan Tankers 
Korea Zinc to Build $7.4 Billion Critical Minerals Refinery in Tennessee With U.S. Government Backing 
Asian Stocks Slide as Central Bank Decisions and Key Data Keep Investors Cautious 
Japan Exports to U.S. Rebound in November as Tariff Impact Eases, Boosting BOJ Rate Hike Expectations 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
Bank of Japan Poised for Historic Rate Hike as Inflation Pressures Persist 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
U.S. Dollar Slips Near Two-Month Low as Markets Await Key Jobs Data and Central Bank Decisions 
Chinese Robotaxi Stocks Rally as Tesla Boosts Autonomous Driving Optimism 
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
Gold and Silver Prices Dip as Markets Await Key U.S. Economic Data 
Asian Currencies Trade Sideways as Dollar Weakens Ahead of Key U.S. Data 
Asian Currencies Slip as Dollar Strengthens; Indian Rupee Rebounds on Intervention Hopes 
Asian Technology and Chipmaking Stocks Slide as AI Spending Concerns Shake Markets 
Japan’s consumer inflation remained elevated in February, fueling expectations that the Bank of Japan (BOJ) will continue tightening monetary policy in 2024.
Government data released Friday showed the national Consumer Price Index (CPI) rose 3.7% year-on-year in February, slightly below January’s 4.0% but still above market forecasts. Core CPI, which excludes volatile fresh food prices, increased 3.0%—above the anticipated 2.9% but easing from January’s 3.2%.
A key inflation gauge closely monitored by the BOJ, which strips out both fresh food and energy prices, rose 2.6% in February from 2.5% in January. This reading remained well above the central bank’s 2% inflation target, underscoring persistent underlying price pressures.
The data highlights how inflation in Japan remains sticky, driven by higher living costs and expectations of strong wage growth. The BOJ, which left interest rates unchanged earlier this week, signaled growing concerns over inflationary persistence. Analysts now expect a potential rate hike as early as May, with forecasts projecting rates could reach 1% by the end of 2025, up from the current 0.5%.
Annual spring wage negotiations between major Japanese firms and labor unions are also expected to result in another round of substantial pay hikes. Robust wage growth is likely to support private consumption and further entrench inflation expectations, giving the BOJ more reason to raise rates.
Sticky inflation and rising wages signal a shift in Japan’s economic landscape, increasing the likelihood of a gradual policy normalization by the BOJ this year. Investors and policymakers will closely watch upcoming inflation and wage data for cues on the central bank’s next move.
