The Bank of Japan increased its key short-term interest rate as widely expected and signaled its readiness to deliver future rate hikes if consumer prices and wages increase at its estimated pace.
Benchmark indexes in China and Hong Kong extended a three-day rally at the end of a volatile trading week. Two new mainland companies listed their shares on the Hong Kong Stock Exchange.
Growing fears of a global race to build AI infrastructure could develop into a bubble weighing on investor sentiment from New York to Tokyo to Hong Kong.
Japan's international trade balance swung to a surplus for the first time in five months in November, driven by a rebound in exports to the U.S. Japan's core machinery orders accelerated for the second month in a row in November.
MetaX Integrated Circuits and HashKey Holdings successfully listed their shares as foreign investors continued to pump capital into China-based technology companies.
China's weaker-than-expected retail sales, fixed-asset investment, and industrial production data confirmed the decelerating economic backdrop amid prolonged weakness in the residential real estate market.
China's top economic planners showed little urgency in providing additional stimulus measures and reiterated their commitment to improving domestic demand and stabilizing the residential property market.
The sharp decline in Softbank Group drove technology stocks and broader indexes lower in Tokyo. The yen continued to retain its downward pressure, nudging the Bank of Japan to raise rates later in the year.
Japan's producer price index held stable in November, and price increases spread to a wider group of sectors. The yen continued to decline, despite the BoJ Governor Ueda signaling a possible rate hike next week.
China's consumer prices rose at a faster pace, and producer prices continued to decline in November, confirming the ongoing demand weakness driven by structural and economic issues.
Japan's indexes lacked direction amid rising political tensions between Japan and China. The yield on 10-year Japanese bonds inched higher to a new 18-year high.
