#Japan Recent indicators show new signs of weakness in the Chinese industry. The November manufacturing PMI (private, S&P Global/RatingDog) fell to 49.9 points, indicating slight contraction, down from 50.6 in October.

Investors are awaiting possible stimulus measures from China’s central economic meeting in December, given the ongoing drag from the real estate sector and the need for additional fiscal support. The mood is one of caution, with markets attentive to the potential resumption of credit programs, infrastructure, and fiscal easing.

Japan

Expectations for monetary tightening in Japan are growing. Sources indicated that the Bank of Japan (BoJ) is likely to raise the benchmark interest rate from 0.50% to 0.75% at the meeting on December 18-19 – a move already signaled by President Kazuo Ueda in a speech on Monday.

Prime Minister Sanae Takaichi's government would be willing to tolerate this increase, given the weakness of the yen, making the adjustment almost certain according to sources. The change in monetary policy would signal the end of decades of ultra-low interest rates.

Markets reacted immediately: the interest rates on Japanese 10-year government bonds jumped to 1.93%, a high not seen in 18 years, and the yen strengthened to near its best level in almost three weeks against the dollar.

Traders see an approximately 80% chance for the increase in December and are already speculating about the pace of hikes in 2024. However, Ueda emphasized that the outlook remains uncertain and will depend on the evolution of inflation and wage growth.#yoangame $BTC $BNB $XRP