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IMF Expects BOJ To Raise Rates Again This Year
Avoiding an all-out trade war, be cautious about today's non-farm data being distorted! The reason for the Japanese yen's significant rise has been found.
Before the employment data to be released in the USA, global stock markets remained stable on Friday (February 7), as investors cautiously felt optimistic about avoiding a full-scale trade war, while the prospect of Japan potentially raising interest rates this year pushed the yen to its highest point in two months.
Japan Leading, Coincident Economic Indices Gain in January
【Japan Stock Closing Review】The yen temporarily broke through the 150 mark! The Nikkei 225 closed just below 0.039 million, focusing on the talks between Trump and Shishimura.
FX168 Financial News (Asia-Pacific) reported that on Friday (February 7), the Japanese stock market fell as investors focused on the talks between USA President Donald Trump and Japan Prime Minister Shigeru Ishiba regarding defense and economic relations. Additionally, the yen to USD Exchange Rates rose to a two-month high, leading to a cautious market sentiment.
Labor shortages may become a reason for the Bank of Japan to raise interest rates, with expectations of another increase this year.
The Bank of Japan is increasingly attributing the main reasons for its weak economic activity to long-term labor shortages rather than stagnant demand. The Bank of Japan may use this as a justification to raise interest rates beyond initial expectations. From factories to hotels to restaurants, Japanese companies are struggling to operate at full capacity, not because they can't find customers, but because they can't find workers. Now, comments are increasingly coming from the Bank of Japan. Analysts and policymakers state that while a tight labor market is not a new trend, the Bank of Japan's concerns about the resulting wage and inflation pressures are more pronounced, which means it will be more inclined to consider further interest rate hikes.
Chan Kwok-kee: The Hong Kong economy is steadily recovering, but still faces various uncertain factors.
The Acting Chief Executive, John Lee, stated that over the past year, global markets have faced numerous challenges, and Hong Kong has also been affected. However, on the path from governance to prosperity, Hong Kong continues to forge ahead, and its economy is steadily recovering. Hong Kong has also been rising in many international rankings, including becoming the most free economy in the world once again, reclaiming its status as the third-largest financial center globally, and talent competitiveness returning to the world's top ten, with global competitiveness rising to fifth place, showcasing strong strength and reflecting international recognition. He continued by stating that the government understands Hong Kong still faces various uncertainties, and the future will bring both challenges and opportunities, but he firmly believes that opportunities outnumber challenges. The authorities will.