The Bank of Japan is expected to raise interest rates on Friday to their highest levels since the 2008 global financial crisis, as a broad stocks rally worldwide calms policymakers' fears U.S. President Donald Trump's tariff threats could upend markets.

Japan’s consumer price growth picked up in December, adding to evidence of steady inflation just hours before the central bank announces its rate decision.

Exports increased more than expected in December thanks to demand for chip-making machines and electronic parts.

About 85.7% of Japanese households expect prices to rise a year from now, a quarterly central bank survey in December showed on Friday, roughly unchanged from 85.6% in the previous poll in September.

The dollar traded in narrow ranges against major peers on Thursday, as the currency continued to struggle for direction in the absence of concrete announcements on tariffs from U.S. President Donald Trump.

The dollar traded in narrow ranges against major peers on Thursday as it struggled for direction in the absence of concrete announcements on tariffs from U.S. President Donald Trump. A spate of central bank policy decisions could move currencies over the next week,

The Bank of Japan (BoJ) is widely expected to raise the short-term interest rate from 0.25% to a 17-year high of 0.50% in January, following the conclusion of its two-day monetary policy review on Friday.

Japanese investors raised their holdings in foreign stocks, driven by a benign U.S. core inflation report that fuelled expectations of Federal Reserve cuts and boosted global equities, while a strong yen also lifted domestic buying power.

U.S. stocks rose to a record as Wall Street regained some of the momentum that catapulted it to 57 all-time highs last year.

Shares were mostly lower in Asia on Friday after China reported that its economy grew at a 5% annual pace last year, hitting the government’s target but slowing from the year before. U.

TOKYO/SINGAPORE: Oil prices rose on Friday ... the oil market with renewed hopes of interest rate cuts by the U.S. Federal Reserve after data showed easing inflation in the world's biggest economy.

SOFR is a benchmark rate which certain variable rate financial products, for example certain mortgages, can be tied to.