Japan's Tokyo core CPI rose 2.4% in December, and the market expected an interest rate hike

According to Jinshi Data, Japan's core CPI in Tokyo rose 2.4% year-on-year in December, slightly lower than the market forecast of 2.5%, but higher than 2.2% in November.

The CPI, excluding fresh food and energy prices, rose 1.8% year-on-year, slightly lower than 1.9% in November.

Markets maintained expectations for a near-term rate hike by the Bank of Japan as price pressures build. The BOJ will scrutinize the data at its January policy meeting, with some analysts expecting the central bank to raise its benchmark rate.

Bank of Japan Governor Kazuo Ueda said the central bank is ready to raise interest rates again if economic and price trends are in line with forecasts.