Bank of Japan

Stocks plunged in Tokyo on Monday after the yen surged in reaction to Shigeru Ishiba's election last week as the head of Japan's ruling party, which boosted expectations the Bank of Japan will continue hiking interest rates.

Japanese stocks surged and markets across Asia started strong on Friday, tracking substantial gains on Wall Street after encouraging U.S. retail sales data reassured investors about the health of the world's biggest economy.

The Bank of Japan raised its key interest rate and revealed plans to halve its bond purchases in actions that underscore its determination to normalize its policy.

Amid a strengthening dollar fueled by robust U.S. economic indicators, the Japanese yen tumbled to its lowest level in 34 years. On Tuesday, the U.S. dollar surged to 151.97 yen, surpassing the previous multi-year peak set in October 2022. This surge has triggered concerns over Japan's currency stability, prompting Finance Minister Shunichi Suzuki to hint at potential intervention.

Japan's central bank on March 19 scrapped its negative interest rate as it finally began unwinding one of the world's most aggressive monetary easing programs.

The maverick policy dating back to 2013 was aimed at jump-starting economic growth and inflation after the country's "lost decades" of stagnant activity and prices in the world's number four economy.

Japan's consumer prices rose 3.4 percent on-year in April, in line with market expectations, government data showed on May 19.    

The figure, which excludes volatile fresh food prices, followed a 3.1 percent rise recorded in both March and February.    

The Bank of Japan announced a review of its longstanding monetary easing measures on April 28 but said it would maintain them for the time being in the first policy decision under new governor Kazuo Ueda.

Japan's consumer prices rose 3.1 percent in March, matching last month's figure and roughly in line with expectations, as inflation slows from four-decade highs, government data showed on April 21.

The figure, which excludes volatile fresh food prices, was marginally higher than market expectations of a 3.0 percent rise and even with February numbers.

Japan's consumer prices rose 3.1 percent in February from a year earlier, slowing from the four-decade highs seen in previous months, government data showed on March 24.

The figure, which excludes volatile fresh food, met market expectations and comes after the government introduced relief measures for soaring energy bills.

Japan's central bank left its ultra-easy monetary policy unchanged in its last meeting before Governor Haruhiko Kuroda steps down and is replaced by economics professor Kazuo Ueda.

While most analysts expected the Bank of Japan to stay the course in Kuroda's final policy decision, some had speculated about a surprise tweak.