Next week's key events include Prime Minister Takaichi's policy speech, remarks by BOJ Governor Ueda and the release of the FOMC minutes. Trends in Japan's real wages will be a focus for markets.
Next week, Prime Minister Takaichi's policy speech will be delivered on the day the extraordinary Diet session is convened. A bill to cut the consumption tax on food products is expected to be a focus, and concerns about fiscal management have reportedly emerged in the market.
On the Bank of Japan front, remarks by Governor Ueda will be watched. If he does not signal a positive stance toward an additional rate hike, views are emerging that yen depreciation could accelerate. Indicators on the output gap and potential growth rate are also scheduled for release. The FOMC minutes for September are expected to offer views on the number of rate hikes during the year based on the September decision.
Japan's real wage growth could slow as summer bonuses drop out of the comparison, while the outlook also points to a positive reading for an eighth consecutive month.