Japan

The Nikkei 225 (JP225) faced downward pressure as headline-driven risk pricing and safe-haven demand in precious metals weighed on Asian equity sentiment.

Japan's path toward monetary normalization hinges on the critical intersection of wage growth persistence and yen-driven imported inflation.

Japan’s wholesale inflation moderated in December, yet a persistent weak Yen continues to apply upward pressure on import costs, complicating the Bank of Japan's normalisation path.

Japan's wholesale inflation eased to 2.4% in December as fuel costs declined, yet a weakening Yen continues to exert significant pressure on import prices.

USD/JPY closes the week at 158.60 as traders weigh Bank of Japan policy shifts, election risks, and potential intervention optics heading into a US holiday.

Nikkei 225 enters a consolidation phase as high-level rates expectations and earnings dispersion dominate investor sentiment heading into the weekend.

Internal discussions at the Bank of Japan suggest an accelerated normalization path, with a potential rate hike as early as April targeting inflation persistence.

Japan's Corporate Goods Price Index (CGPI) slowed to 2.4% in December, signaling a cooling wholesale pricing pipeline despite ongoing sensitivity to yen volatility.

Japan's corporate goods pricing cooled to 2.4% in December as energy costs ebbed, though a weak yen continues to pressure import costs for the Bank of Japan.