Global Markets Brace for Fed Decision as Japan Service Inflation Hits Two-Year High

By / / Breaking News

This update was written automatically with AI from market data and news wire reports, and published without review by a person.

Key Takeaways

  • Japan’s Corporate Services Price Index (CSPI) surged 3.7% year-on-year in September, matching expectations and marking the highest level since June 2024, driven by rising labor and transport costs.
  • The US Dollar Index (DXY) held steady near 102.00 as investors moved to the sidelines ahead of the Federal Reserve’s two-day policy meeting, where interest rates are widely expected to remain unchanged.
  • ADNOC Drilling (ADNOCDRILL) reported nine-month revenue of $3.71 billion for 2026, a significant climb supported by the expansion of its oilfield services and the deployment of AI-enabled rigs.
  • GMO Internet (9449) warned of potential system disconnections following a major cyberattack that led to unauthorized foreign exchange trades and a subsequent ransom demand.
  • Geopolitical tensions remain elevated as South Korea’s military downplayed North Korean border artillery movements as "legacy systems," while Russian missile strikes in Kyiv damaged critical metro infrastructure.

The global financial landscape is currently dominated by a "wait-and-see" approach as the US Federal Reserve begins its October policy meeting. The US Dollar Index (DXY) maintained a positive tone around the 102.00 mark, supported by stabilizing Treasury yields and an 80% market probability of a final rate hike in December. Analysts suggest that while a "hold" is certain this week, the tone set by the Fed will dictate the dollar's trajectory against major peers.

In Asia, Japan's Services Producer Price Index (SPPI) accelerated to 3.7% in September, up from a revised 3.5% in August. This data reinforces the Bank of Japan's (BOJ) case for a gradual normalization of monetary policy, with markets eyeing a potential rate hike in December. While the headline figure was boosted by a 97.7% spike in ocean freight prices, underlying inflation excluding international transport remained steadier at 2.9%.

The energy sector saw a strong performance from ADNOC Drilling (ADNOCDRILL), which reached $3.71 billion in revenue for the first three quarters of 2026. The company’s growth is being fueled by its Oilfield Services (OFS) segment and the early deployment of the AD-300, its first AI-enabled automated island rig. The firm reaffirmed its full-year guidance, citing a highly contracted revenue base that provides clear earnings visibility through 2030.

Cybersecurity concerns hit the Japanese tech sector as GMO Internet (9449) urged customers to remain vigilant amid a looming midday threat. The company revealed that a third party had accessed its cloud services to execute unauthorized FX trades, leading to a ransom demand. Shares of the internet conglomerate have faced pressure as the firm calls for the Japanese government to invoke "active cyber defense" measures to protect critical infrastructure.

Regional equity markets showed mixed results, with the Philippine Benchmark Index jumping 1.6% to reach a session high of 5,731.54. This rally comes despite the Philippine peso hitting its 34th record low of the year against the greenback. Meanwhile, the cultural world mourns the passing of Tetsuya Chiba, the legendary creator of the boxing manga Ashita no Joe, who died at the age of 87 according to Kyodo News.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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