Most Asian markets indexes crashed on Friday following the losses extended by wall street in the west while investors also glanced at the economic data in the region.
Japan’s data in the dawn of December 23 have shown that the country’s core consumer inflation hit a fresh four-decade high as most of companies continue to raise the prices of goods and services. Japan’s core consumer price index is at 3.7% which is the highest since December 1981.
The Bank of Japan policymakers had discussed the prospective market impact of a future exit from Ultra-low interest rates months before implementing the same on Tuesday to their yield control policy. However, BoJ’s further policy tweaks were disarranged due to the prevailing risk of global recession and uncertainty over the swiftness of wage rise. Analysts predict that many retailers are planning further hikes for food products next year, and the outlook of further policy tweaks by BoJ is hampered.
The chief economist at Norinchukin Research Institute, Takeshi Minami has said ” The hurdle of policy normalization isn’t low. The global economy may worsen in the first half of next year, making it hard for Boj to take steps that can be interpreted at monetary tightening”
Apart from electricity bills , the prices have also hiked in various other Commodities like fried chicken, smartphones, Air conditioners, in a sign of forthcoming inflation pressure, as shown by data
The research firm Teikoku Data Bank has said in a report that already most of the companies are expected to increase the prices for 7152 food products in the first four months of 2023 double from this year.
The “core-core” index of japan which excludes fresh foods and utility bills have also rose to 2.8% in November , advancing from a 2.5% increase in October
The Nikkei 225 fell by 0.93 % as of 09:54 IST. The Topix fell by 0.52% as of 09:54 IST. The Japanese yen stood at 132.62 against dollar
| Name | Price | Change | % change |
| Nikkei | 26264.75 | -243.12 | 0.92% |
| HSI | 19578.44 | -100.78 | 0.51% |
| ASX200 | 7099.60 | -52.90 | 0.74% |
| Kospi | 2323.30 | -33.43 | 1.42% |
| Nifty | 17956.45 | -170.90 | 0.94% |
| Sensex | 60274.42 | -551.80 | 0.91% |
Talking about the economic perspective Japanese economy unexpectedly shrank by 0.8% in the third quarter due to prevailing global recession and higher import costs however analysts have said that the growth have picked up this quarter but the risk still sustains.
