{"id":71931,"date":"2026-09-17T20:38:12","date_gmt":"2026-09-18T00:38:12","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-as-rba-and-boj-policy-decisions-loom-us-china-diplomacy-intensifies\/71931\/"},"modified":"2026-09-17T20:38:12","modified_gmt":"2026-09-18T00:38:12","slug":"global-markets-rally-as-rba-and-boj-policy-decisions-loom-us-china-diplomacy-intensifies","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-as-rba-and-boj-policy-decisions-loom-us-china-diplomacy-intensifies\/71931\/","title":{"rendered":"Global Markets Rally as RBA and BoJ Policy Decisions Loom; US-China Diplomacy Intensifies"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>RBA Governor Michele Bullock<\/strong> signals a potential interest rate hike at the September 28-29 meeting, noting that upside inflation risks are now materializing.<\/li>\n<li><strong>The Nikkei 225 (<a href=\"\/stock\/%5EN225\">^N225<\/a>)<\/strong> surged 1% in Tokyo trading, led by a 5% gain in <strong>SoftBank Group (<a href=\"\/stock\/9984\">9984<\/a>)<\/strong> shares following reports of a massive $16 billion loan to fuel its AI expansion.<\/li>\n<li><strong>US Secretary of State Marco Rubio<\/strong> and <strong>Chinese Foreign Minister Wang Yi<\/strong> held a critical phone call to finalize details for President Xi Jinping&#39;s upcoming visit to Washington.<\/li>\n<li><strong>New Zealand&#39;s Foreign Ministry<\/strong> officially denied any discussions regarding &quot;associate membership&quot; with the European Union, following reports that the status was offered to Canada.<\/li>\n<\/ul>\n<h2>RBA Weighs Further Tightening Amid Stubborn Inflation<\/h2>\n<p>Reserve Bank of Australia (RBA) Governor <strong>Michele Bullock<\/strong> informed a parliamentary committee on Friday that the central bank must determine if current interest rates are sufficient to cool prices. Bullock emphasized that <strong>upside risks to inflation<\/strong>, originally flagged in August, appear to be materializing as firms continue to pass on higher input costs to consumers.<\/p>\n<p>Market participants have reacted by pricing in a <em>70-75% probability of a rate hike<\/em> at the RBA&#39;s upcoming meeting on September 28-29. The <strong>Australian Dollar (<a href=\"\/stock\/AUDUSD\">AUD\/USD<\/a>)<\/strong> firmed to <strong>0.7113<\/strong> following the hawkish remarks, as the Governor reiterated that bringing inflation back to the 2-3% target range remains the bank&#39;s &quot;crucial objective.&quot;<\/p>\n<h2>Japan Markets Rise Ahead of BoJ Policy Shift<\/h2>\n<p>In Tokyo, the <strong>Nikkei 225 (<a href=\"\/stock\/%5EN225\">^N225<\/a>)<\/strong> climbed 1% to reach <strong>64,136.25<\/strong>, buoyed by a weaker yen and positive sentiment following the US Federal Reserve&#39;s recent rate decision. <strong>SoftBank Group (<a href=\"\/stock\/9984\">9984<\/a>)<\/strong> was a primary driver of the index, with shares jumping <strong>5%<\/strong> on news that CEO Masayoshi Son is securing billions in new funding to bolster the company&#39;s position in the global AI race.<\/p>\n<p>Meanwhile, the <strong>Japan 2-Year JGB yield<\/strong> fell 1 basis point to <strong>1.85%<\/strong> in early Friday trading. This slight retreat comes as investors brace for the <strong>Bank of Japan (BoJ)<\/strong> policy decision, with expectations mounting that the central bank may lift its policy rate to a three-decade high to combat persistent inflationary pressures.<\/p>\n<h2>Diplomatic Maneuvers: US-China and NZ-EU Relations<\/h2>\n<p>On the geopolitical front, <strong>Chinese Foreign Minister Wang Yi<\/strong> urged &quot;stronger communication and cooperation&quot; during a phone call with <strong>US Secretary of State Marco Rubio<\/strong>. The call served as a final diplomatic bridge ahead of <strong>President Xi Jinping\u2019s<\/strong> state visit to the US next week, where he is expected to meet with <strong>President Donald Trump<\/strong> to discuss trade, AI, and regional security.<\/p>\n<p>Separately, the <strong>New Zealand Foreign Ministry<\/strong> issued a firm denial regarding rumors of the country seeking &quot;associate membership&quot; with the <strong>European Union<\/strong>. The statement followed a proposal by EU Commission President <strong>Ursula von der Leyen<\/strong> to grant such a status to <strong>Canada<\/strong> as a means of diversifying trade alliances. New Zealand officials clarified that while they value their $1.8 billion trade deal with the bloc, no formal discussions for membership status have occurred.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways RBA Governor Michele Bullock signals a potential interest rate hike at the September 28-29 meeting, noting that upside 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