Asian Markets Rise on Tokyo Inflation Data

Asian markets showed cautious gains as the yen strengthened following higher-than-expected inflation data from Tokyo, raising prospects for a Bank of Japan rate hike, now estimated at over 60% for December. Shares in China rose amid speculation of increased economic support from Beijing, while the US dollar weakened against major currencies, marking its first weekly decline in two months. The MSCI's regional equity gauge increased by 0.5%, despite Japan's Nikkei index falling by 0.3% due to the yen's strength. South Korea's market was notably impacted by a surprise interest rate cut, reflecting concerns over slowing economic growth. As US markets were closed for Thanksgiving, Asian stocks were buoyed by the backdrop of a strong US performance prior to the holiday. Investors are also eyeing potential shifts in global monetary policy, with speculation around moves by the Federal Reserve and European Central Bank in the coming weeks.