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Wall Street stocks retreated Friday as the market’s latest rally lost steam, while the yen pushed higher after the Bank of Japan lifted interest rates.After a flattish open, major US indices tumbled into the red. The S&P 500 finished down 0.3 percent after closing at a record high on Thursday.”This is normal consolidation or profit taking after a big 2-week rally,” said Adam Sarhan of 50 Park Investment.Wall Street stocks have gained in recent sessions following benign US inflation data, strong earnings from banks and the new presidency of Donald Trump in Washington.Markets have thus far welcomed his growth-oriented agenda and largely shrugged off his threats of tariffs.Sarhan said the market was poised for a pause given the heavy calendar next week, which includes a Federal Reserve monetary policy decision and earnings from tech giants and other big companies.In Europe, both London and Frankfurt stocks hit fresh record highs before turning lower. Paris ended the day with a gain, led by luxury stocks after British fashion house Burberry showed signs of recovery.In Japan, Tokyo’s stock market dropped and the yen rallied after the Bank of Japan lifted borrowing costs to their highest level since 2008 and flagged further increases in the pipeline. Even as other central banks have raised borrowing costs in recent years — and started cutting again in 2024 — the BoJ has remained an outlier.But it concluded last March that Japan’s “lost decades” of economic stagnation and static or falling prices were over, finally lifting rates above zero.In other Asian trading, Hong Kong gained nearly two percent and Shanghai also advanced following Trump’s latest comments with regard to China.In an interview broadcast Thursday night, Trump said he would “rather not” impose tariffs on China and signaled openness at negotiating a trade deal with Beijing. “We have one very big power over China, and that’s tariffs, and they don’t want them, and I’d rather not have to use it,” Trump told Fox News. “But it’s a tremendous power over China.””Clearly these are off-the-cuff remarks but it has left the overnight market feeling like there’s a scenario where China escapes the worst of the tariff regime,” said Jim Reid, managing director at Deutsche Bank.Trump’s remarks earlier Thursday before the World Economic Forum in Davos calling for lower interest rates added to pressure on the dollar. – Key figures around 2140 GMT -New York – Dow: DOWN 0.3 percent at 44,424.25 (close)New York – S&P 500: DOWN 0.3 percent at 6,101.24 (close)New York – Nasdaq Composite: DOWN 0.5 percent at 19,954.30 (close)London – FTSE 100: DOWN 0.7 percent at 8,502.35 (close)Paris – CAC 40: UP 0.4 percent at 7,927.62 (close)Frankfurt – DAX: DOWN 0.1 percent at 21,394.93 (close)Tokyo – Nikkei 225: DOWN 0.1 percent at 39,931.98 (close)Hong Kong – Hang Seng Index: UP 1.9 percent at 20,066.19 (close)Shanghai – Composite: UP 0.7 percent at 3,252.63 (close)Dollar/yen: DOWN at 155.93 yen from 156.05 yen on ThursdayEuro/dollar: UP at $1.0500 from $1.0415Pound/dollar: UP at $1.2484 from $1.2353Euro/pound: DOWN at 84.06 pence from 84.31 penceWest Texas Intermediate: UP 0.1 percent at $74.66 per barrelBrent North Sea Crude: UP 0.3 percent at $78.50 per barrelburs-jmb/st

Global stocks diverged on Friday as investors weighed corporate earnings, economic data and President Donald Trump’s policies.Meanwhile the US dollar lost more than one percent against the euro and pound following the US president’s comments about not wanting to impose tariffs on China and calling for lower interest rates.The S&P 500 edged higher to set another record but all of Wall Street’s indices slid into the red after a US consumer sentiment survey came in lower than expected.”It is fair to say that there is a festering sense that the market may be due for a consolidation period given the scope of recent gains,” said Briefing.com analyst Patrick O’Hare, pointing to a six percent gain by the S&P 500 since the beginning of last week and a similar rise in the Nasdaq.”Those are big moves in front of a big week next week that will feature earnings reports from Apple, Meta Platforms, Microsoft, Tesla and Amazon.com” as well as an interest rate meeting by the US Federal Reserve and the release of the Fed’s preferred inflation gauge, he added.Wall Street’s major indices were still poised to end the week with solid gains, thanks in no small part to comments and actions by Trump since his return to the White House on Monday.In Asian trading, Hong Kong gained nearly two percent and Shanghai also advanced following Trump’s more friendly comments with regard to China.In a speech via video link Thursday at the World Economic Forum in Davos, Trump pushed for lower interest rates and said he would cut taxes for companies investing in the United States while imposing tariffs on those who do not.He also said in a separate interview that he would “rather not” impose tariffs on China and signalled openness at negotiating a trade deal with Beijing. “Clearly these are off-the-cuff remarks but it has left the overnight market feeling like there’s a scenario where China escapes the worst of the tariff regime,” said Jim Reid, managing director at Deutsche Bank.The comments also saw the greenback take a hit.”President Trump’s wish to see lower interest rates led to a drop and one-month low in the US dollar,” said Axel Rudolph at online trading platform IG.”This benefitted the gold price which rallied to within a whisker of its all-time high,” he added.In Japan, Tokyo’s stock market dropped and the yen rallied after the Bank of Japan lifted borrowing costs to their highest level since 2008 and flagged further increases in the pipeline. Moody’s Analytics said “the weak yen is a key reason” for the hike, along with a run of forecast-beating inflation reports.The yen has come under pressure against the dollar in recent months after the US Federal Reserve dialled back its expectations for rate cuts this year, and amid concerns that Trump’s policies would reignite inflation.In Europe, both London and Frankfurt stocks hit fresh record highs before turning lower. Paris ended the day with a gain, led by luxury stocks after British fashion house Burberry showed signs of recovery.- Key figures around 1630 GMT -New York – Dow: DOWN 0.1 percent at 44,511.43 pointsNew York – S&P 500: FLAT at 6,120.11New York – Nasdaq Composite: FLAT at 20,052.63London – FTSE 100: DOWN 0.7 percent at 8,502.35 (close)Paris – CAC 40: UP 0.4 percent at 7,927.62 (close)Frankfurt – DAX: DOWN less than 0.1 percent at 21,394.93 (close)Tokyo – Nikkei 225: DOWN 0.1 percent at 39,931.98 (close)Hong Kong – Hang Seng Index: UP 1.9 percent at 20,066.19 (close)Shanghai – Composite: UP 0.7 percent at 3,252.63 (close)Dollar/yen: DOWN at 155.61 yen from 156.03 yen on ThursdayEuro/dollar: UP at $1.0514 from $1.0415Pound/dollar: UP at $1.2490 from $1.2352Euro/pound: down at 84.20 pence from 84.31 penceWest Texas Intermediate: DOWN 0.2 percent at $74.46 per barrelBrent North Sea Crude: FLAT at $78.29 per barrelburs-rl/gv

Global stock markets rose Friday after a record day on Wall Street in response to US President Donald Trump’s tax-cut pledge and his more friendly comments with regard to China.In a speech via video link at the World Economic Forum in Davos, Trump pushed for lower interest rates and said he would cut taxes for companies investing in the United States while imposing tariffs on those who do not.He also said in a separate interview that he would “rather not” impose tariffs on China and signalled openness at negotiating a trade deal with Beijing. “Clearly these are off-the-cuff remarks but it has left the overnight market feeling like there’s a scenario where China escapes the worst of the tariff regime,” said Jim Reid, managing director at Deutsche Bank. That spurred Chinese equities to rally, with Hong Kong gaining nearly two percent and Shanghai also advancing.In Europe, Frankfurt and Paris stock markets both gained after data showed that business activity in the eurozone bounced back in January after a two-month contraction.The release of the closely watched data throughout Europe “brought a significant degree of optimism, coming as global leaders discuss the hopelessness of the region in Davos”, said Joshua Mahony, chief market analyst at Scope Markets. But London stocks fell after data showed an increase in job cuts despite business activity coming out stronger than expected. In company news, British fashion house Burberry showed signs of recovery despite posting a further decline in sales, sending its shares soaring 15 percent. In the wake of the results, Paris’s luxury sector led gains with Gucci-owner Kering surging eight percent and LVMH up three percent on hopes of a China-led recovery. In Japan, Tokyo’s stock market dropped and the yen briefly rallied after the Bank of Japan lifted borrowing costs to their highest level since 2008 and flagged further increases in the pipeline. Moody’s Analytics said “the weak yen is a key reason” for the hike, along with a run of forecast-beating inflation reports.The yen has come under pressure against the dollar in recent months after the US Federal Reserve dialled back its expectations for rate cuts this year, and amid concerns that Trump’s policies would reignite inflation.Oil prices recovered some of Thursday’s losses that followed Trump’s call to Saudi Arabia and OPEC to lower prices, with a recent build in US stockpiles adding to the weakness.- Key figures around 1100 GMT -London – FTSE 100: DOWN 0.3 percent at 8,537.31 pointsParis – CAC 40: UP 1.0 percent at 7,969.75Frankfurt – DAX: UP 0.4 percent at 21,485.70Tokyo – Nikkei 225: DOWN 0.1 percent at 39,931.98 (close)Hong Kong – Hang Seng Index: UP 1.9 percent at 20,066.19 (close)Shanghai – Composite: UP 0.7 percent at 3,252.63 (close)New York – Dow: UP 0.9 percent at 44,565.07 (close)Dollar/yen: DOWN at 155.98 yen from 156.03 yen on ThursdayEuro/dollar: UP at $1.0492 from $1.0415Pound/dollar: UP at $1.2430 from $1.2352Euro/pound: UP at 84.41 pence from 84.31 penceWest Texas Intermediate: UP 0.5 percent at $75.01 per barrelBrent North Sea Crude: UP 0.5 percent at $78.71 per barrel

British fashion house Burberry announced Friday a further decline in sales, hit by weak demand in China, but the troubled group is showing signs of recovery under new leadership. Revenue dropped seven percent to £659 million ($871 million) in the company’s third quarter, covering the three months to late December, from the period a year earlier, Burberry said. The group famed for its trench coats noted, however, that it was more likely to avoid a full-year operating loss after the sales decline was less severe than forecast by analysts.The news sent shares in Burberry — known also for its trademark red, camel and black check design — soaring by around 15 percent in morning deals on London’s FTSE 250 index.Burberry exited London’s top-tier FTSE 100 index in September after 15 years, with analysts citing strategic mistakes and weak demand from China.Chief executive Joshua Schulman, appointed in July, swiftly launched a turnaround plan focused on cutting costs and selling more outerwear. “We recognise that it is still very early in our transformation and there remains much to do,” Schulman said in a statement.The Asia-Pacific region saw Burberry’s largest decline in sales during its third quarter, with turnover in mainland China dropping seven percent.China is the world’s biggest spender in the luxury sector, accounting for half of global sales.But as the country’s post-pandemic recovery falters, consumption has flagged, sending jitters across the globe.Burberry’s latest sales decline in the world’s second-biggest economy was partially offset by an uplift in revenue from the Americas, it said.Burberry had posted a net loss of £74 million for its first half, after reporting a profit for the same period a year earlier.”Recent months have seen a sharp turnaround in performance, hinting at a much-needed comeback,” Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, said after the trading update.”But there’s still a long way to go… Building back brand desirability requires a lot of investment, even more patience,” he said.

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.In a much-anticipated speech via video link at the Davos World Forum in Switzerland, Trump pushed for lower interest rates and said he would cut taxes for companies investing in the United States while imposing tariffs on those who do not.He also called on Saudi Arabia and OPEC to lower oil prices, adding that “when the oil comes down, it’ll bring down prices” and in turn bring interest rates down. His comments come after he said on the campaign trail that he would slash taxes, regulations and immigration while hitting key trading partners with tariffs.That fuelled worries among some economists that he could reignite inflation and cause the Federal Reserve to pause its recent run of rate cuts, or even increase them.US traders appeared to welcome the speech, with the S&P 500 hitting a record high, while the Dow and Nasdaq also advanced.Asia mostly followed suit, with Hong Kong, Shanghai, Sydney, Seoul, Mumbai and Bangkok all up, though Tokyo, Singapore, Wellington, Jakarta and Manila slipped. London and Frankfurt rose again after hitting fresh record highs Thursday, while Paris also advanced.Markets have enjoyed a broadly positive start to Trump’s second term amid relief that while he has warned about imposing big tariffs on key partners, he has so far been less abrasive than his first four years.Matt Burdett and Adam Sparkman at Thornburg Investment Management said that could be due to circumstances.”Eight years ago, Trump’s aggressive trade policies were implemented against a backdrop of low inflation and low rates, creating room for bold actions,” they said in a commentary. “Today, elevated price levels are a key concern for voters and policymakers alike. Given this reality, we question if Trump’s tariff posturing may now be aimed more at pressuring China and other foreign countries into negotiating favourable trade terms for the US.”- Japan hikes rates -The Bank of Japan on Friday lifted borrowing costs to their highest level since 2008 in a well-telegraphed move, with data showing another jump in inflation last month that reinforced expectations for further tightening.”Japan’s economic activity and prices have been developing generally in line with the Bank’s outlook, and the likelihood of realising the outlook has been rising,” the bank said in a statement.The yen briefly rallied to as strong as 154.85 per dollar after officials flagged more increases were likely in the pipeline as inflation remains elevated and officials slowly withdraw stimulus that has kept monetary policy at ultra-loose levels for years.Moody’s Analytics said “the weak yen is a key reason” for the hike, along with a run of forecast-beating inflation prints.BoJ chief Kazuo Ueda told a news conference that the pace and timing of future hikes was yet to be determined.”We would like to make a decision after we have studied the impact of this rate hike,” he said.The yen has come under pressure against the dollar in recent months after the Fed dialled back its expectations for rate cuts this year and the concerns over Trump’s impact on inflation.The BoJ decision comes ahead of the Fed’s meeting next week, which will be closely watched for its views on the outlook under the new president.Oil prices were barely moved after Thursday’s losses that followed Trump’s call to Riyadh and OPEC, with a recent build in US stockpiles adding to the weakness.- Key figures around 0815 GMT -Tokyo – Nikkei 225: DOWN 0.1 percent at 39,931.98 (close)Hong Kong – Hang Seng Index: UP 1.9 percent at 20,066.19 (close)Shanghai – Composite: UP 0.7 percent at 3,252.63 (close)London – FTSE 100: UP 0.2 percent at 8,585.56Dollar/yen: DOWN at 155.39 yen from 156.03 yen on ThursdayEuro/dollar: UP at $1.0461 from $1.0415Pound/dollar: UP at $1.2385 from $1.2352Euro/pound: UP at 84.46 pence from 84.31 penceWest Texas Intermediate: DOWN 0.1 percent at $74.57 per barrelBrent North Sea Crude: FLAT at $78.28 per barrelNew York – Dow: UP 0.9 percent at 44,565.07 (close)

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.The well-flagged 25-basis-point rise to 0.5 percent comes as data indicates the Japanese economy is developing in line with BoJ expectations and follows another bumper inflation reading.The move, which leaves borrowing costs at the highest since 2008, was also underpinned by “steadily” rising wages and financial markets being “stable on the whole”, the BoJ said in a statement.”Japan’s economic activity and prices have been developing generally in line with the Bank’s outlook, and the likelihood of realising the outlook has been rising,” it said.If its outlook is met, “the bank will accordingly continue to raise the policy interest rate and adjust the degree of monetary accommodation”, it added.BoJ chief Kazuo Ueda told a news conference that the pace and timing of future hikes was yet to be determined.”We would like to make a decision after we have studied the impact of this rate hike,” he said.The hawkish comments sent the yen up as much as 0.7 percent against the dollar to 154.84 yen.Even as other central banks have raised borrowing costs in recent years — and started cutting again in 2024 —  the BoJ has remained an outlier.But it concluded last March that Japan’s “lost decades” of economic stagnation and static or falling prices were over, finally lifting rates above zero.That increase was followed by another in July that caught investors off guard and sparked turmoil in global equity and currency markets.This time Ueda prepared markets for an increase — some 75 percent of economists expected one — and the reaction was more muted on Friday.- Trump tariffs -“With no market turbulence after (US President Donald) Trump’s inauguration,” conditions for the BoJ to hike its policy rate have been met, Ko Nakayama, chief economist of Okasan Securities Research, said before the announcement.”Raising just 25 basis points to 0.5 percent won’t cool the economy.”There are, however, concerns among Japanese companies that Trump could impose huge tariffs on imports from key trading partners, which many economists warn could drive up inflation.Japan’s economic growth slowed in the July-September quarter, partly because of one of the fiercest typhoons in decades and warnings of a major earthquake, which did not materialise.”The Bank of Japan is dialling back monetary policy support despite the poor run of economic data. The weak yen is a key reason,” Moody’s Analytics said in a note.Data released Friday showed that headline Japanese inflation hit 3.6 percent in December, or 3.0 percent adjusted for food prices, up from 2.7 percent in November.The core reading remained above the BoJ’s two-percent inflation target, which it has surpassed every month since April 2022.The BoJ on Friday also raised its inflation forecast for fiscal 2024 — running to March 31, 2025 — to 2.7 percent from 2.5 percent previously.For fiscal 2025 it now expects inflation of 2.4 percent and 2.0 percent in 2026 — both up from 1.9 percent previously forecast.Marcel Thieliant at Capital Economics said inflation was set to remain above the BoJ’s objective “for a while yet”.As a result “we’re sticking to our forecast that the policy rate will reach an above-consensus 1.25 percent by the end of next year”, Thieliant said before Friday’s announcement.kh-nf-jug-stu/dan

The Bank of Japan hiked interest rates on Friday to their highest level in 17 years and signalled more were in the pipeline despite fears of turmoil under US President Donald Trump.The well-flagged 25-basis-point increase to 0.5 percent comes as economic data indicates the world’s fourth-biggest economy was developing in line with the policymakers’ expectations and follows another bumper reading on inflation.The move, which leaves borrowing costs at the highest since 2008, was underpinned by healthy underlying inflation, firms “steadily” raising wages and financial markets being “stable on the whole”, the BoJ said in a statement.”Japan’s economic activity and prices have been developing generally in line with the Bank’s outlook, and the likelihood of realising the outlook has been rising,” it said.If its outlook is met, “the bank will accordingly continue to raise the policy interest rate and adjust the degree of monetary accommodation”, it added.The news, and expectations for more hikes in the future, saw the yen strengthen to 155.20 per dollar — from 156.3 earlier — having weakened in recent months following Trump’s election and bets the Federal Reserve will slow down its interest rate cut campaign this year.Even as other central banks have raised borrowing costs in recent years, the BoJ has remained an outlier, maintaining an ultra-loose stance in an attempt to spark growth and inflation.But it concluded last March that Japan’s “lost decades” of economic stagnation and static or falling prices were over, finally lifting rates above zero, where they had been for more than a decade in a bid to kickstart inflation and growth.The March increase — which was the first since 2007 — was followed by another in July that caught investors off guard and sparked turmoil in global equity and currency markets.This time, BoJ chief Kazuo Ueda prepared markets for an increase — some 75 percent of economists expected one — and the reaction was more muted on Friday.- Trump tariffs -“With no market turbulence after Trump’s inauguration,” conditions for the BoJ to hike its policy rate have been met, Ko Nakayama, chief economist of Okasan Securities Research, said before the announcement.”Raising just 25 basis points to 0.5 percent won’t cool the economy,” he said before the decision was announced.There are, however, concerns among Japanese companies that Trump could throw a spanner into the works by imposing huge tariffs on imports from key trading partners, which many economists warn could drive up inflation.Japan’s economic growth slowed in the July-September quarter, partly because of one of the fiercest typhoons in decades and warnings of a major earthquake, which did not materialise.”The Bank of Japan is dialling back monetary policy support despite the poor run of economic data. The weak yen is a key reason,” Moody’s Analytics said in a note.Data released Friday showed that headline Japanese inflation hit 3.6 percent in December, or 3.0 percent adjusted for food prices, up from 2.7 percent in November.The core reading remained above the BoJ’s two-percent inflation target, which it has surpassed every month since April 2022.The BoJ on Friday also raised its inflation forecast for fiscal 2024 — running to March 31, 2025 — to 2.7 percent from 2.5 percent previously.For fiscal 2025 it now expects inflation of 2.4 percent and 2.0 percent in 2026 — both up from 1.9 percent previously forecast.Marcel Thieliant at Capital Economics said inflation was set to remain above the BoJ’s objective “for a while yet”.As a result “we’re sticking to our forecast that the policy rate will reach an above-consensus 1.25 percent by the end of next year”, Thieliant said before Friday’s announcement.kh-nf-jug-stu/dan

Asian 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.In a much-anticipated speech via video link at the Davos World Forum in Switzerland, the president pushed for lower interest rates and said he would cut taxes for companies investing in the United States while imposing tariffs on those who do not.He also called on Saudi Arabia and OPEC to lower oil prices, adding that “when the oil comes down, it’ll bring down prices” and in turn bring interest rates down. His comments come after he said on the campaign trail that he would slash taxes, regulations and immigration while hitting key trading partners with tariffs.That fuelled worries among some economists that he could reignite inflation and cause the Federal Reserve to pause its recent run of rate cuts, or even increase them.US traders appeared to welcome the speech, with the S&P 500 hitting a record high, while the Dow and Nasdaq also advanced.Asia mostly followed suit, with Tokyo, Hong Kong, Shanghai, Sydney, Seoul and Bangkok all up, though Singapore, Wellington, Mumbai, Jakarta and Manila slipped.Markets have enjoyed a broadly positive start to the president’s second term amid relief that while he has warned about imposing big tariffs on key partners, he has so far been less abrasive than his first four years.Matt Burdett and Adam Sparkman at Thornburg Investment Management said that could be due to circumstances.”Eight years ago, Trump’s aggressive trade policies were implemented against a backdrop of low inflation and low rates, creating room for bold actions,” they said in a commentary. “Today, elevated price levels are a key concern for voters and policymakers alike. Given this reality, we question if Trump’s tariff posturing may now be aimed more at pressuring China and other foreign countries into negotiating favourable trade terms for the US.”- Japan hikes rates -The Bank of Japan on Friday lifted borrowing costs to their highest level since 2008 in a well-telegraphed move, with data showing another jump in inflation last month that reinforced expectations for further tightening.”Japan’s economic activity and prices have been developing generally in line with the Bank’s outlook, and the likelihood of realising the outlook has been rising,” the bank said in a statement.The yen rallied against the dollar after officials flagged that more increases were likely in the pipeline as inflation remains elevated and officials slowly withdraw stimulus that has kept monetary policy at ultra-loose levels for years.”With no market turbulence after Trump’s inauguration,” conditions for the BoJ to hike its policy rate have been met, said Ko Nakayama, chief economist of Okasan Securities Research.”Raising just 25 basis points to 0.5 percent won’t cool the economy,” he said. Moody’s Analytics said “the weak yen is a key reason” for the hike, along with a run of forecast-beating inflation prints.The yen has come under pressure against the dollar in recent months after the Fed dialled back its expectations for rate cuts this year and the concerns over Trump’s impact on inflation.The BoJ decision comes ahead of the Fed’s meeting next week, which will be closely watched for its views on the outlook under the new president.Oil prices extended Thursday’s losses after Trump’s call to Riyadh and OPEC, with a recent build in US stockpiles adding to the weakness.- Key figures around 0400 GMT -Tokyo – Nikkei 225: UP 0.4 percent at 40,105.92Hong Kong – Hang Seng Index: UP 1.8 percent at 20,057.46 (break)Shanghai – Composite: UP 0.7 percent at 3,253.79 (break)Dollar/yen: DOWN at 155.50 yen from 156.03 yen on ThursdayEuro/dollar: UP at $1.0447 from $1.0415Pound/dollar: UP at $1.2394 from $1.2352Euro/pound: DOWN at 84.30 pence from 84.31 penceWest Texas Intermediate: DOWN 0.2 percent at $74.47 per barrelBrent North Sea Crude: DOWN 0.2 percent at $78.14 per barrelNew York – Dow: UP 0.9 percent at 44,565.07 (close)London – FTSE 100: UP 0.2 percent at 8,565.20 (close)

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.In a much-anticipated speech via video link at the Davos World Forum in Switzerland, the new president pushed for lower interest rates and said he would cut taxes for companies investing in the United States while imposing tariffs on those who do not.He also called on Saudi Arabia and OPEC to lower oil prices, adding that “when the oil comes down, it’ll bring down prices” and in turn bring interest rates down. His comments come after he said on the campaign trail that he would slash taxes, regulations and immigration while hitting key trading partners with tariffs.That fuelled worries among some economists that he could reignite inflation and cause the Federal Reserve to pause its recent run of rate cuts, or even increase them.US traders appeared to welcome the speech, with the S&P 500 hitting a record high, while the Dow and Nasdaq also advanced.Asia mostly followed suit, with Tokyo, Hong Kong, Shanghai, Sydney, Seoul and Singapore all up, though Shanghai and Manila slipped with Manila barely changed.Markets have enjoyed a broadly positive start to the president’s second term amid relief that while he has warned about imposing big tariffs on key partners, he has so far been less abrasive than his first four years.Matt Burdett and Adam Sparkman at Thornburg Investment Management said that could be due to circumstances.”Eight years ago, Trump’s aggressive trade policies were implemented against a backdrop of low inflation and low rates, creating room for bold actions,” they said in a commentary. “Today, elevated price levels are a key concern for voters and policymakers alike. Given this reality, we question if Trump’s tariff posturing may now be aimed more at pressuring China and other foreign countries into negotiating favourable trade terms for the US.”The yen was slightly down on the dollar, with a rate hike largely priced in when the Bank of Japan ends its meeting Friday, with data showing another jump in inflation last month reinforcing expectations.The forecast increase to 0.5 percent would mark the highest level since 2008.”With no market turbulence after Trump’s inauguration,” conditions for the BoJ to hike its policy rate have been met, said Ko Nakayama, chief economist of Okasan Securities Research.”Raising just 25 basis points to 0.5 percent won’t cool the economy,” he said. Analysts are tipping the lift even as the economy struggles, but Moody’s Analytics said “the weak yen is a key reason”, along with a run of forecast-beating inflation prints.The yen has come under pressure against the dollar in recent months after the Fed dialled back its expectations for rate cuts this year and the concerns over Trump’s impact on inflation.The BoJ decision comes ahead of the Fed’s meeting next week, which will be closely watched for its views on the outlook under the new president.Oil prices extended Thursday’s losses after Trump’s call to Riyadh and OPEC, with a recent build in US stockpiles adding to the weakness.- Key figures around 0230 GMT -Tokyo – Nikkei 225: UP 0.6 percent at 40,192.85 (break)Hong Kong – Hang Seng Index: UP 1.7 percent at 20,032.67Shanghai – Composite: UP 0.2 percent at 3,237.43Dollar/yen: UP at 156.31 yen from 156.03 yen on ThursdayEuro/dollar: DOWN at $1.0413 from $1.0415Pound/dollar: UP at $1.2354 from $1.2352Euro/pound: DOWN at 84.30 pence from 84.31 penceWest Texas Intermediate: DOWN 0.4 percent at $74.34 per barrelBrent North Sea Crude: DOWN 0.4 percent at $77.99 per barrelNew York – Dow: UP 0.9 percent at 44,565.07 (close)London – FTSE 100: UP 0.2 percent at 8,565.20 (close)

Japan’s much-loved “tonkatsu” pork cutlets come with a mound of freshly shredded cabbage, but a surge in the price of the humble vegetable has prompted chef Katsumi Shinagawa to skimp on servings.The culprit is a changing climate. Last year’s record summer heat and heavy rain ruined crops, driving up the cost of the leafy green in what media have dubbed a “cabbage shock”.It is the latest pain point for shoppers and eateries already squeezed by inflation, with energy bills up along with the price of staples from rice to flour and cooking oil.Shinagawa’s Tokyo restaurant Katsukichi offers free cabbage refills alongside its juicy, deep-fried cutlets — a common practice with tonkatsu, a national comfort food.But with cabbage now over three times more expensive than usual, according to the agriculture ministry, the restaurant has had to make each serving slightly smaller.”I was ready to cope when the price of flour started rising, but not cabbage,” Shinagawa told AFP, explaining that “tonkatsu and cabbage are like inseparable friends”.”Cabbages sold at supermarkets are now mind-blowingly expensive,” he added. “Half-sized ones used to be around 100 yen ($0.60) per head, but they are now like 400 yen.”It has become a hot topic on social media, with many users aghast after a head of cabbage was recently given an eye-popping price tag of 1,000 yen at a supermarket in the Hyogo region.”I never imagined cabbage would ever become so expensive that it’s basically a delicacy,” one user lamented on X.- Extreme heat -Climate change has made extreme weather more frequent and heatwaves more intense worldwide.Last year Japan sweltered through its joint hottest summer since records began, followed by its warmest autumn.”It was so hot that some cabbages were seared to death. The heat dehydrated them and made them wither,” said Morihisa Suzuki from a federation of agricultural cooperatives in Aichi, one of Japan’s largest cabbage-growing regions.Days of intense localised rain, then a prolonged dry period with little sunshine have made things worse.As a result, farmers in Aichi are grappling with yields an estimated 30 percent lower than usual, the groupsays.Neighbouring South Korea — where a different variety of cabbage is fermented to make the all-important side dish kimchi — has also suffered.Government data shows that in mid-January, cabbage prices soared 75 percent there compared to the same period last year.Shin Mi-ja, a shopkeeper in Seoul, told AFP that cabbage prices were high “because of the heatwave and heavy rains”.”Overall prices for vegetables have risen, so people don’t really want to buy” cabbage, even with the Lunar New Year holiday approaching, she said.- Inflation -In Japan, the heat has also made lettuce, green onion and “daikon” radish more expensive at the checkout.And rice prices are soaring after harvests were hit by high temperatures and water shortages.Official inflation data released Friday showed that the grain jumped a whopping 64.5 percent in December year-on-year.Overall consumer prices were up 3.6 percent, or 3.0 percent when adjusted for food prices. The Bank of Japan was expected to raise interest rates later Friday.Meanwhile bird flu outbreaks have created supply shortages for eggs, pushing up their price too.The weak yen as well as labour shortages and rising transport costs have also created a perfect storm for Japanese restaurants.Japan saw a record 894 restaurant bankruptcies last year due to inflation, the cheaper yen and the end of pandemic-era government subsidies, according to research firm Teikoku Databank.Teikoku expects price rises in 2025 for around 6,000 food items, from bread to beer and noodles.And convenience chain 7-Eleven said this week it would raise prices nationwide for onigiri rice balls, sushi and other rice-based items.Chef Shinagawa does not want to pass on the price increases to his customers, however.For now, “we’re persevering,” he said.