Asia Markets Update: BOJ Holds Rates Amid Tariff Concerns; RBA Eyes May Rate Cut as Inflation Eases​

Asian stock markets experienced mixed movements on Thursday, May 1, 2025, amid thin trading volumes due to Labor Day holidays in several countries. Japan’s Nikkei 225 index rose by 0.9% following the Bank of Japan’s decision to maintain its interest rate at 0.5% and downgrade its economic growth forecasts, citing uncertainties from U.S. tariffs. ​ETCFO.com

In Australia, the S&P/ASX 200 index edged up by 0.2%, supported by a stronger-than-expected trade surplus of AUD 6.9 billion in March. This positive trade data, combined with underlying inflation falling back into the Reserve Bank of Australia’s (RBA) target range of 2%-3%, has increased market expectations for a potential rate cut in May. ​FXStreet

Meanwhile, the Japanese yen weakened by approximately 0.5% to 143.73 per dollar after the BOJ’s policy announcement, reflecting market concerns over the impact of U.S. trade policies on Japan’s economic outlook. ​Reuters

Investors are closely monitoring upcoming U.S. economic data releases, including employment figures and inflation metrics, which could influence global market sentiment and central bank policy decisions in the coming weeks.

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