Tokyo inflation, BOJ rate decision

The Bank of Japan held its benchmark policy rate unchanged at 0%-0.1%, as expected.

The BOJ also said it will continue to conduct bond purchases in line with the March decision, but no comment was made on the yen.

The Japanese yen weakened beyond 156 against the U.S. dollar following the decision, touching fresh 34-year lows. The benchmark Nikkei 225 index extended gains to rise 0.7%.

Investors now await a press conference by BOJ Governor Kazuo Ueda later in the day.

— Shreyashi Sanyal

Shares of Taiwan’s Hon Hai Precision Industry jumped as much as 4.3% in early trading, hitting an over two-week high.

U.S. software company Cerence said it will supply Hon Hai EV subsidiary Foxtron with a voice-powered AI assistant. Cerence said the system features bilingual recognition of Taiwanese Mandarin and English.

“We’re proud to partner with Foxtron to bring the power of voice interaction to drivers in Taiwan for the first time,” said Christian Mentz, chief revenue officer at Cerence.

Shares of Hon Hai have surged nearly 50% so far this year.

— Shreyashi Sanyal

Inflation in Japan’s capital city of Tokyo slowed to 1.8% in April, down from the 2.6% gain in March.

Core inflation in the city — which strips out prices of fresh food — came in at 1.6%, down from 2.4% in March and missing expectations of 2.2% from economists polled by Reuters.

Tokyo’s inflation figures are widely considered to be a leading indicator of nationwide trends.

— Lim Hui Jie

Investors seeking exposure to China’s growing gaming industry should look specifically at two technology according to Goldman Sachs.

The investment bank expects “China to see faster growth from mid 2024 supported by game launches and a loosening regulatory environment.”

Touching on opportunities for the companies, the Wall Street bank flagged opportunities such as “an accelerating quarter with blockbuster title launches,” in 2Q2023.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

Shares of popular athleisure brand Lululemon have plummeted this year, trailing the S&P 500 significantly.

Its shares, which were included in the Wall Street index just last October, are down around 28% year-to-date.

Does that make it a good bargain for investors right now? Jack Dwyer, CEO of Infusive Asset Management, weighs in.

CNBC Pro subscribers can read more here.

— Weizhen Tan

The personal consumption expenditures price index will be due on Friday morning, giving the Federal Reserve a detailed glimpse into the latest inflation metrics.

For March, economists polled by Dow Jones anticipate headline PCE grew 0.3% from the prior month and by 2.6% from 12 months earlier. They expect that core prices, which exclude food and energy costs, grew by 0.3% on a monthly basis and by 2.7% year over year.

The first-quarter gross domestic product report issued Thursday revealed that PCE for the period rose by 3.4%, well above the 1.8% increase in the fourth quarter. The result incited a sell-off for stocks as investors fretted over signs of stagflation – a scenario in which the economy’s growth slows but inflation rises.

–Darla Mercado