Kazuo Ueda News

The data came in the wake of Bank of Japan (BOJ) Governor Kazuo Ueda's warning, made after its decision to keep interest rates steady on Wednesday, that rising food costs and stronger-than-expected wage growth could push up underlying inflation. The increase in the core consumer price index (CPI), which strips away the effect of volatile fresh food costs, compared with a median market forecast of a 2.9% gain. That kept core inflation above the BOJ's 2% target for the 35th straight month. It slowed from the previous month's 3.2% rise due largely to the resumption of subsidies to curb fuel costs, government data showed on Friday. A separate index that excludes the effects of both fresh food and fuel costs, closely watched by the BOJ as a broader price trend indicator, rose 2.6% in February from a year earlier after climbing 2.5% in January. It was the fastest year-on-year increase since March 2024, when it rose 2.9%.

Bank of Japan (BOJ) and the Federal Reserve later in the day. Overnight, Israeli airstrikes pounded Gaza and killed more than 400 people, U.S. President Donald Trump and Russian President Vladimir Putin failed to reach an agreement on a Ukraine ceasefire and Germany's outgoing parliament approved plans for a massive spending surge.

Bank of Japan chief bolstered rate hike expectations. The Nikkei closed 0.08% lower at 36,790.03, after rising as much as 1.4% earlier in the session to track Wall Street's overnight higher.

Japan's central bank has raised its key interest rate to about 0.5% from 0.25%, noting that inflation is holding at a desirable target level

bank policy decisions weighed. The Nikkei closed 0.29% lower at 38,701.90, bringing it to a weekly decline of 1.66%, its steepest decline since early-November.

Bank of Japan is staying guarded on the timing of the next rate hike with December hardly a done deal given soft consumption, its governor's cautious decision-making style and anxiety over U.S. economic policy in a second Trump presidency. BOJ Governor Kazuo Ueda signalled that December will be a live meeting in an interview with the Nikkei newspaper last week, when he said another rate hike was approaching.

Shares are mixed in Asia after U.S. stocks fell to their worst loss since Election Day

h debt and escalating wars topped the official agenda at the International Monetary Fund and World Bank annual meetings, but finance leaders spent much of their energy worrying about the potential impacts of a return of Donald Trump to power in November's U.S. presidential election. Republican candidate Trump's gains in recent polls to erase much of the early advantage of his Democratic opponent, Vice President Kamala Harris, was part of nearly every conversation among finance officials, central bankers and civil society groups attending the meetings in Washington this past week. Among concerns were Trump's potential to upend the global finance system with massive tariff increases, trillions of dollars more in debt issuance and a reversal of work to fight climate change in favor of more fossil fuel energy production.

Asian stocks have surged, with Japan’s Nikkei 225 index leading gains after Wall Street romped to records following the Federal Reserve’s big cut to interest rates

Subscribe to enjoy similar stories. TOKYO—The Bank of Japan left its short-term policy rate unchanged Friday as it examines how the economy and markets are digesting its most recent interest-rate increase. The Japanese central bank maintained its target for the overnight call rate at 0.25% after raising it to that level in July.

Bank of Japan kept interest rates steady on Friday and maintained its view the economy remained on track for a moderate recovery. In a widely expected move, the central bank left unchanged its overnight call rate target at 0.25% by a unanimous vote.

Japan's Nikkei share average rose in early trade on Friday, with pharma shares rallying for a second session, although gains were limited as tech stocks followed their U.S. peers lower. Japanese exporter-heavy equity markets also got some broad support from a weaker yen versus the dollar. However, the outlook for the currency pair looks murky, with investors watching Bank of Japan Governor Kazuo Ueda's testimony in parliament after last month's surprise rate hike.

Asian markets opened lower, as investors prepare for comments from Jerome Powell later Friday. Equities in Australia and South Korea fell alongside Hong Kong share futures, echoing Thursday’s selloff in US stocks where both the S&P 500 and tech-heavy Nasdaq 100 indexes retreated.

Federal Reserve and the Bank of Japan that will help define the global rates trajectory. The MSCI Asia Pacific Index climbed 0.2% as benchmarks in Japan, Australia and South Korea rose. That came after the S&P 500 and Nasdaq 100 indexes advanced on further signs the Fed will cut interest rates.

Asian stocks rose, following a buoyant session on Wall Street amid bets the Federal Reserve will soon signal it’s ready to start cutting interest rates. Shares advanced in Japan, South Korea and Australia. The MSCI Asia-Pacific index headed for a third day of gains while Hong Kong futures also pointed to a rise. The advance was fueled by a bullish mood in the US, where the S&P 500 climbed for an eighth straight day — the longest winning streak this year.

special session on Aug. 23 to discuss the central bank's decision last month to raise interest rates, government sources said on Tuesday. The special session, to be conducted by the lower house financial affairs committee, is likely to ask Bank of Japan Governor Kazuo Ueda to attend, said the sources, who declined to be identified. The schedule will be officially decided later on Tuesday.

As we go to press Thursday financial investors are already choosing to forget the tremors that hit global markets Monday. The theory appears to be that after a brief period of policy-induced upset, global finance has stabilized and we’re out of the woods. Alas, dear friends, we’ve barely wandered into the forest.

Wednesday brought two important monetary-policy meetings, and the more important one probably wasn’t the Federal Open Market Committee gathering in Washington (see nearby). The Bank of Japan announced significant new steps on its slow and not entirely steady path to monetary normalization in an effort to shore up the yen. The Japanese central bank raised its target short-term interest rate to 0.25% from 0.1%.

Investors begin the week desperate for answers to questions about the near-term path of global monetary policy after conflicting signals from key economies upended markets.

Global stocks are mixed after U.S. benchmarks ticked to more records following the latest signs that the U.S. economy may be slowing without falling into recession