Central banks RegionChina & Asia-Pacific Impact Notable
Japan services PPI holds at 3.7%, finance minister warns on currency
What happened
Japan's services producer price index rose 3.7% year-on-year in September, matching forecasts and August's pace, the highest in over two years. The Bank of Japan's hawkish pause leaves scope for a potential rate hike in December. Separately, the finance minister said Japan stands ready to take decisive action in the currency market.
What it means for markets
Steady services inflation reinforces the BoJ's tightening bias, supporting the yen (FXY) and pressuring USD/JPY. The finance minister's verbal intervention adds further yen support. A December hike would strengthen the yen further, potentially impacting carry trades and weighing on Japanese equities (EWJ).
AssetExpectedMove since first report
Japanese yen FXY Steady services inflation and verbal intervention support yen
▲ Up
-0.39% 58.42 (2026-10-23) → 58.19 (2026-10-30)
Japan EWJ Potential BoJ tightening and stronger yen weigh on equities
▼ Down
-1.26% 94.10 (2026-10-23) → 92.91 (2026-10-30)
What to watch
- BoJ October policy decision for any hawkish signals
- Any actual currency intervention by Japan
- December BoJ meeting for a potential rate hike
Source timeline
- Reuters Japan stands ready to take decisive action in currency market, finance minister says
- investingLive Japan September services PPI holds at 3.7% y/y, in line with forecast, before BoJ
- Reuters Bank of Japan's hawkish pause to leave scope for December hike