People crossing the street in Shibuya, Tokyo.
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Asia-Pacific markets were set to open higher Friday as investors awaited the Bank of Japan’s rate decision.
The central bank is slated to conclude its two-day policy meeting, where it is widely expected to keep policy rates steady at 0.5%, according to Reuters poll of economists.
In a Sept. 12 note, HSBC analysts also agreed with the consensus, and forecasted that the BOJ will raise rates by 25 basis points at its October meeting.
Japan’s core inflation rate fell to its lowest since November 2024, coming in at 2.7% for August and marking a third straight month of decline, according to government data.
The core inflation figure — which strips out prices of fresh food — was in line with the 2.7% expected by economists polled by Reuters.
Headline inflation in the country also dropped to 2.7%, coming down from 3.1% in July and marking a fresh low since November 2024.
The analysts said that BOJ officials are looking for signs of economic resilience, “and we believe that the second quarter GDP print, which outperformed market expectations, certainly delivered.”
Japan’s benchmark Nikkei 225 index was set for a higher open, with its futures contract in Chicago last traded at 45,745, and its counterpart in Osaka at 45,650 against the index’s last close of 45,303.43.
Australia’s ASX/S&P 200 was also poised for a higher open, with its futures contract trading at 8,838, against the index’s last close of 8,745.20.
Hong Kong’s Hang Seng Index was also set to start trading higher, with its futures contract last traded at 26,612, against the index’s previous close of 26,544.85.
Overnight in the U.S., the major averages closed higher with smaller equities seeing the biggest boost, after the Federal Reserve signaled it was embarking on an easing rate path, reinvigorating investors and raising hopes for a ratcheting up of economic growth.
The S&P 500 closed up 0.48% at 6,631.96, while the Nasdaq Composite popped 0.94% to settle at 22,470.73. The Dow Jones Industrial Average added 124 points, or 0.27%, to close at 46,142.42.
Each of the major U.S. indexes notched a fresh all-time intraday high on Thursday, just a day after stocks had a volatile trading session Wednesday in the wake of the Fed’s rate cut.
— CNBC’s Pia Singh and Alex Harring contributed to this report.
