September's seasonally adjusted unemployment rate was 2.4%, below the market forecast, while Tokyo's core CPI rose 2.6% year on year in October. The figures are seen as supporting expectations for an additional BOJ rate hike.
The seasonally adjusted unemployment rate released by the Ministry of Internal Affairs and Communications for September was 2.4%, below the market forecast of 2.5%. The active job openings-to-applicants ratio was 1.19, up from 1.18 the previous month, indicating that labor shortages continue.
Tokyo's core CPI rose 2.6% year on year in October, in line with the market forecast. Although the rate of increase slowed from 2.7% the previous month, it remained above the BOJ's 2% target. Core-core CPI rose 0.6% month on month.
Prices in Tokyo are considered a leading indicator for nationwide prices, and the latest results support the view that the BOJ will maintain its rate-hike course while confirming the sustainability of price increases. The BOJ raised its policy rate to a 31-year high last month, and the possibility of an additional rate hike is being priced in by the market.
Market participants maintained their view that price increases will continue, as core CPI remained in the upper 2% range despite slowing growth. Expectations for a narrowing of the Japan-US interest rate differential could affect movements in the yen and bond markets.