Investors in Asia will be hoping for a calmer end to a momentous week, the highlight of which was a rate hike in Japan.
As Washington-based economist Phil Suttle puts it: “Judged by the actions of other central banks, these were hardly major moves. Judged by Japanese policy over the past 25 years, these were major moves.”
So far this year the Bank of Japan has raised rates twice, ended yield curve control and started QT, Suttle noted.
Asia’s economic calendar on Friday is light, with only South Korean inflation likely to be a market-mover. A Reuters poll suggests the annual rate ticked up to 2.50% in July from a one-year low of 2.40% in June.
Swaps market pricing points to 35 basis points of easing from the Bank of Korea this year. Barclays economists on Thursday forecast quarter-point rate cuts in October and November.
Asia’s corporate calendar on Friday is busier, with earnings reports due from Japan including Nintendo and Sumitomo Mitsui Financial Group.