Headline: Markets Brief: BOJ Hike Bets Grow as Yen Slips; China Eyes Property Support; U.S. Pushes Back on Nvidia Curbs
Key Takeaways
Global markets are tracking a busy policy backdrop, with rising expectations for a Bank of Japan rate increase, fresh talk of Chinese housing support, and a U.S. push to limit new export controls on advanced chips. Currency traders are alert to potential volatility around today’s FX option expiries, while Australian policymakers caution against reading too much into choppy inflation prints.
Expectations are building that the Bank of Japan will lift its policy rate to 0.75% by December, with most forecasters seeing at least that level in place by the end of the first quarter. Persistent yen weakness has amplified imported-inflation pressures even as lower oil prices ease some cost concerns. Wage growth is projected to accelerate to around 4.9% next year, reinforcing the case for policy normalization. Still, several market watchers warn USD/JPY could test 160, arguing incremental BOJ tightening may not arrest the slide, raising the probability of official intervention as authorities step up warnings against “sharp, one-sided” currency moves.
In China, authorities are weighing broader measures to stabilize the property market, including nationwide mortgage subsidies, larger tax rebates, and lower transaction costs. The prospect of a more comprehensive toolkit lifted real estate shares, with investors betting targeted support can revive housing demand, shore up balance sheets, and steady growth-sensitive sectors across Asia.
In the U.S., the White House is urging lawmakers to oppose proposed export restrictions aimed at curbing Nvidia’s chip sales to China, a move that could materially affect the company’s revenue outlook depending on how legislation evolves. Elsewhere, the Reserve Bank of Australia’s Sarah Hunter cautioned against overreacting to volatile monthly inflation data, noting that recent surprises complicate the case for further easing. In the currency market, notable FX option expiries at the 10am New York cut may influence intraday liquidity and price action.
Key Points: – Bank of Japan widely expected to raise rates to 0.75% by December or early Q1 amid yen weakness and rising wage growth. – USD/JPY could approach 160 despite BOJ tightening, with intervention risks increasing as authorities warn on disorderly moves. – China is considering nationwide mortgage subsidies, bigger tax rebates, and lower transaction costs to support the housing market. – White House urges Congress to resist new export controls targeting Nvidia’s chip sales to China, citing potential revenue impact. – RBA highlights the volatility of monthly inflation and warns against policy overreaction amid uneven data. – FX option expiries at the 10am New York cut are in focus for potential short-term moves in major currency pairs.
