The Bank of Japan opted to maintain its policy rate unchanged, resulting in the yen hitting a new low against the U.S. dollar. The decision led to fresh 34-year lows for the yen, while the Nikkei 225 index saw a 0.7% increase. The central bank plans to continue with its bond purchases in line with previous decisions, and investors are eagerly anticipating a press conference later in the day with BOJ Governor Kazuo Ueda.
In other market news, Hon Hai Precision Industry, a Taiwanese company, experienced a 4.3% surge in its shares, reaching a peak not seen in over two weeks. This rise was attributed to a partnership with U.S. software company Cerence, which will supply Hon Hai’s EV subsidiary Foxtron with a voice-powered AI assistant incorporating bilingual recognition.
Additionally, Tokyo’s inflation saw a significant slowdown, with core inflation coming in lower than expected. This data is closely monitored as an indicator of nationwide trends. Looking ahead, the Federal Reserve is set to release the personal consumption expenditures price index on Friday, shedding light on the latest inflation metrics. Investors will be keenly watching these developments as economic conditions continue to evolve.
Vocabulary List:
- opted (verb): To make a choice or decision.
- unchanged (adjective): Not altered or modified.
- surge (noun): A sudden powerful forward or upward movement.
- peak (noun): The highest point or maximum level.
- incorporating (verb): To include something as part of a whole.
- indicator (noun): A thing that shows the state or level of something.