
APAC markets rise ahead of BoJ rate call

Asia-Pacific markets traded mostly higher on Friday, tracking overnight gains on Wall Street as geopolitical concerns eased and investors turned their focus to the Bank of Japan’s policy decision. The Bank of Japan raised its growth outlook and maintained its hawkish inflation forecasts on Friday while keeping interest rates unchanged, signalling confidence that a moderate recovery could justify further increases in still-low borrowing costs, even as it warned that yen weakness may prompt firms to pass on higher import costs and lift underlying consumer prices. By 11:50 am AEDT (12:50 am GMT), Australia’s S&P/ASX 200 was little changed, while Japan’s Nikkei 225 edged up 0.2%. South Korea’s KOSPI 200 outperformed the region, rising 1.1%. On the data front, Japan’s headline inflation rate slowed sharply in December, falling to 2.1% from 2.9% in the previous period, its lowest level since March 2022. Core inflation, which excludes fresh food, rose 2.4% year on year, in line with market expectations. Overnight in the United States, major benchmarks extended gains for a second consecutive session. The Dow Jones Industrial Average and the S&P 500 each added 0.6%, while the Nasdaq Composite closed 0.9% higher. Commodity







