- In bumpy trading on Friday, Asian markets were largely higher, with a minor tailwind from reducing inflationary pressure in the US.
- While predictions that central banks will moderate the pace of interest rate hikes helped a regional equity barometer to a third week of gains, Hong Kong's benchmark index fluctuated and Japanese stocks dipped.
- Japan's topix dipped as the yen's recent increase darkened the outlook for exporters. A drop in fast retailing equities following a profit miss also dampened mood.
- Japan's 10-yr bond rate has risen above the BoJ's 0.5% ceiling, fueling speculation that the BoJ would reconsider the consequences of its ultra-easy monetary policy. The yen was barely changed following its 2.5% gain on Thursday.
- The won lost ground as the BoK lifted its benchmark interest rate, possibly for the last time during its 18-month tightening cycle, as economic concerns surfaced.
- Treasury rates rose marginally after falling in the previous session in the US. Bond yields in Australia and New Zealand have fallen in line with movements in US interest rates. Traders moved past initial disappointment with an in-line US consumer price index to focus on the possibility that aggressive monetary policy is gradually producing the desired results.
