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.

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

Equity benchmarks rose in Tokyo ahead of a key interest rate decision by the Bank of Japan later Friday, where a hike is expected. Stocks also rose in Sydney and Seoul. The S&P 500 advanced 0.5%, with the gauge topping the 6,

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 ...

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,

Asian markets rose Friday after a record day on Wall Street in response to Donald Trump's tax-cut pledge, while the yen weakened slightly ahead of an expected interest rate hike by the Bank of Japan later in the day.

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.

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