## Japanese Stocks Rise as Yen Weakens
Japanese stocks advanced on Wednesday, October 25, 2023, as the yen weakened to its weakest level since 1990. The Nikkei finished the day up 0.9% at 40,762.73, close to its all-time high of 41,087.75 reached the previous Friday.
The yen's weakness spurred an immediate warning from Japan's finance minister of "decisive action," a phrase he last used in late 2022 before yen-buying intervention. The yen has been sliding despite the Bank of Japan's first interest rate hike in 17 years last week, as traders expect very gradual tightening and possible delays to long-expected Federal Reserve easing.
## Mixed Performance in Asia
Meanwhile, Hong Kong's Hang Seng slumped 1%, and mainland Chinese blue chips lost about 0.7%, reversing gains from the previous session. Overall, MSCI's broadest index of Asia-Pacific shares advanced 0.1%, but that flipped to a 0.17% decline if Japanese shares were removed.
## Anticipation for US Inflation Data and Fed Chair Comments
Traders are anticipating the release of the U.S. Federal Reserve's favored inflation indicator and public comments from Fed Chair Jerome Powell on Friday, October 27, 2023. Most markets will be closed for a holiday, adding to the uncertainty.
## Dollar Index and Euro
The U.S. dollar index, which measures the currency against six major peers, including the yen, was 0.07% higher at 104.36, just below Friday's five-week high of 104.49. The dollar was last 0.06% stronger at 151.65 yen.
The euro was flat at $1.08285. Sterling fell 0.12% to $1.26175.
## Gold and Crude Oil
Gold was little changed at around $2,179 as it continued to search for a short-term floor following its surge to a record $2,222.39 on Thursday, October 26, 2023.
Crude oil fell for a second day after a report that crude stockpiles surged in the U.S., the world's biggest oil user, and on signs major producers are unlikely to change their output policy at a technical meeting next week.
Brent crude futures for May dropped 74 cents, or 0.9%, to $85.51 a barrel. The May contract is set to expire on Thursday, and the more actively traded June contract declined 68 cents, or 0.8%, at $84.95.
U.S. West Texas Intermediate (WTI) crude futures for May delivery fell 64 cents, or 0.8%, at $80.98.