A person walks in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Monday, Nov. 7, 2022, in Tokyo. Asian stocks mostly rose Monday, as investors weighed uncertainties such as the U.S. mid-term elections and China's possible moves to ease coronavirus restrictions. (AP Photo/Eugene Hoshiko)
Asia’s stock markets made a wobbly start to the final full trading week of 2022, with the prospect of interest rates rising further next year taking the edge off festive cheer.
The Federal Reserve and European Central Bank hiked rates and promised more last week, and speculation is even building that the Bank of Japan, which meets on Monday and Tuesday, is eying a shift in its ultra-dovish stance in future.
Japan’s Nikkei (.N225) fell 1% in early trade and the yen , which rose about 0.5% to 136.00 per dollar, was the biggest mover in quiet currency trade. MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 0.1%.
Japan will consider revising a 2% inflation target agreed between the government and central bank next year, four sources familiar with the matter told Reuters. News agency Kyodo first reported the potential change. When asked about Kyodo’s report, Chief Cabinet Secretary Hirokazu Matsuno said there was no truth the government is set to revise its inflation agreement.
“Where there’s smoke, eventually there is fire,” said National Australia Bank strategist Rodrigo Catril in Sydney.
“This sort of news we’re getting plays to this view that the government will open the door for the BOJ to have a more flexible approach,” he said, “and that some of this uber-undervaluation of the yen can be reversed.”
This report’s information was first seen on REUTERS; to read more, click this link.
