The fading shadow of reflationists in the Bank of Japan, and the latest addition to the board of an academic favouring an end to ultra-low interest rates, will likely bring the central bank's thinking closer to global peers taking a more conventional approach on monetary policy.

Concurrently, oil prices dipped, exerting additional pressure on the broader dollar index across Asia. Trump's stern calls on OPEC, particularly Saudi Arabia, to boost production and slash prices are a boon for Asia's vast oil-dependent economies, alleviating some of their financial strain.

Copyright 2025 The Associated Press. All Rights Reserved. A Japanese flag flutters at the Bank of Japan headquarters in Tokyo on July 29, 2022. (AP Photo/Shuji ...

After Trump said he would “demand that interest rates drop immediately,” the 2-year Treasury yield edged lower and stocks ticked up.

Markets rose Friday after a record day on Wall Street in response to Donald Trump's tax-cut pledge, while the yen strengthened after a widely expected interest rate hike by the Bank of Japan. Given this reality,

The Bank of Japan increased interest rates on Friday to their highest in 17 years and signalled more hikes to come, sending the yen higher against the dollar.

"If our economic and price forecasts are achieved, we will raise our policy rate accordingly and adjust the degree of monetary support," Himino said. The BOJ raised interest rates to 0.5% from 0.25% last week on the view that wages will continue rising and keep inflation stable around its 2% target.

TOKYO (Reuters) - The fading shadow of reflationists in the Bank of Japan, and the latest addition to the board of an academic favouring an end to ultra-low interest rates, will likely bring the central bank's thinking closer to global peers taking a more conventional approach on monetary policy.

The Bank of Japan made a significant step toward shrinking its massive balance sheet last week, while market watchers were fixated on the biggest interest rate increase from the central bank in 18 years.

As ongoing geopolitical tensions and supply chain instability could impact the market, countries still appear eager to become more independent in the nuclear fuel cycle. Click to read.

Kazakhstan will make a final decision on oil production cuts after the next joint OPEC+ meeting, the Central Asian country's Energy Minister Almasadam Satkaliyev said on Wednesday.

Chip giant Nvidia ( NVDA) was more than 11% lower in the first hour of US trading. Industry peer ASML ( ASML) lost 8%, while Arm ( ARM ), Broadcom ( AVGO ), and Micron Technology ( MU) also got hammered.