Asia Braces for Tokyo CPI and Fed Tone Before Weekend
Inflation in Tokyo finally heats up
Tokyo’s core CPI is expected to tick around 3.4%–3.6% year over year for June, with rising rents and food costs now reaching levels not seen in decades. This could put pressure on the Bank of Japan to consider further tightening, ending years of deflationary policies.
Kashkari sparks Fed “wait-and-see” mode
Back in the U.S., Minneapolis Fed President Neel Kashkari signals that the Fed prefers steady rates until there’s clarity on trade policy and tariff impacts. His remarks ahead of his Tokyo address suggest a cautious tone that global markets will digest today.
Other Asian movers to watch
Investors are also eyeing Australia’s monthly CPI update and the Bank of Japan’s policy meeting minutes for signal of rate path. As Asia leads into Friday, markets brace for volatility in FX, equities and bond markets.