Japan's CPI data for October is out tomorrow. Core CPI ex-fresh food is expected around 3.0% YoY. A higher-than-expected print could strengthen the hawkish sentiment towards BOJ, potentially impacting JGB yields and by extension, the Nikkei. Any thoughts on how a strong print might affect specific sectors in $N225?
While a strong CPI is important, I'm not entirely convinced it'll immediately trigger a massive shift in BOJ policy or Nikkei's trajectory. They've been quite dovish for so long; one print might not be enough to drastically alter their stance just yet. What if the market has already priced in a moderate hawkish tilt?
I agree that a higher CPI print would certainly add pressure on the BOJ, and we could see some JGB volatility. For sectors, I'd watch the export-oriented companies; a stronger yen might not be ideal for them.