Japan Rate Hike Anxiety Tests Corporate Cash Flow Resilience

, wiping out its weekly gains. This decline followed weaker-than-expected October household spending data, which underscored inflation's persistent drag on the economy. .

, . This yield increase reflected growing investor anticipation for tighter monetary policy. The Nikkei's movement capped a period of volatility in late 2025, . Elevated trading volumes suggest active market participation, potentially linked to evolving expectations around .

While the government views an impending December hike as tolerable under current conditions, the market's reaction highlights underlying uncertainty. Investors are adjusting to the prospect of significantly higher rates after years of , despite subdued regional trade dynamics. The Nikkei's volatility signals caution as the BOJ's next move approaches, with mixed investor sentiment persisting amid uneven corporate earnings and cash flow trends across sectors.