{"id":73661,"date":"2026-10-26T23:38:17","date_gmt":"2026-10-27T03:38:17","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-brace-for-fed-decision-as-japan-service-inflation-hits-two-year-high\/73661\/"},"modified":"2026-10-26T23:38:17","modified_gmt":"2026-10-27T03:38:17","slug":"global-markets-brace-for-fed-decision-as-japan-service-inflation-hits-two-year-high","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-brace-for-fed-decision-as-japan-service-inflation-hits-two-year-high\/73661\/","title":{"rendered":"Global Markets Brace for Fed Decision as Japan Service Inflation Hits Two-Year High"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Japan\u2019s Corporate Services Price Index (CSPI) surged 3.7% year-on-year in September<\/strong>, matching expectations and marking the highest level since June 2024, driven by rising labor and transport costs.<\/li>\n<li><strong>The US Dollar Index (DXY) held steady near 102.00<\/strong> as investors moved to the sidelines ahead of the Federal Reserve\u2019s two-day policy meeting, where interest rates are widely expected to remain unchanged.<\/li>\n<li><strong>ADNOC Drilling (<a href=\"\/stock\/ADNOCDRILL\">ADNOCDRILL<\/a>) reported nine-month revenue of $3.71 billion for 2026<\/strong>, a significant climb supported by the expansion of its oilfield services and the deployment of AI-enabled rigs.<\/li>\n<li><strong>GMO Internet (<a href=\"\/stock\/9449\">9449<\/a>) warned of potential system disconnections<\/strong> following a major cyberattack that led to unauthorized foreign exchange trades and a subsequent ransom demand.<\/li>\n<li><strong>Geopolitical tensions remain elevated<\/strong> as South Korea\u2019s military downplayed North Korean border artillery movements as &quot;legacy systems,&quot; while Russian missile strikes in Kyiv damaged critical metro infrastructure.<\/li>\n<\/ul>\n<p>The global financial landscape is currently dominated by a &quot;wait-and-see&quot; approach as the <strong>US Federal Reserve<\/strong> begins its October policy meeting. The <strong>US Dollar Index (DXY)<\/strong> maintained a positive tone around the <strong>102.00<\/strong> mark, supported by stabilizing Treasury yields and an 80% market probability of a final rate hike in December. Analysts suggest that while a &quot;hold&quot; is certain this week, the tone set by the Fed will dictate the dollar&#39;s trajectory against major peers.<\/p>\n<p>In Asia, <strong>Japan&#39;s Services Producer Price Index (SPPI)<\/strong> accelerated to <strong>3.7%<\/strong> in September, up from a revised 3.5% in August. This data reinforces the <strong>Bank of Japan&#39;s (BOJ)<\/strong> 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 <strong>97.7%<\/strong> spike in ocean freight prices, underlying inflation excluding international transport remained steadier at <strong>2.9%<\/strong>.<\/p>\n<p>The energy sector saw a strong performance from <strong>ADNOC Drilling (<a href=\"\/stock\/ADNOCDRILL\">ADNOCDRILL<\/a>)<\/strong>, which reached <strong>$3.71 billion<\/strong> in revenue for the first three quarters of 2026. The company\u2019s growth is being fueled by its <strong>Oilfield Services (OFS)<\/strong> segment and the early deployment of the <strong>AD-300<\/strong>, 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.<\/p>\n<p>Cybersecurity concerns hit the Japanese tech sector as <strong>GMO Internet (<a href=\"\/stock\/9449\">9449<\/a>)<\/strong> 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 &quot;active cyber defense&quot; measures to protect critical infrastructure.<\/p>\n<p>Regional equity markets showed mixed results, with the <strong>Philippine Benchmark Index<\/strong> jumping <strong>1.6%<\/strong> to reach a session high of <strong>5,731.54<\/strong>. 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 <strong>Tetsuya Chiba<\/strong>, the legendary creator of the boxing manga <em>Ashita no Joe<\/em>, who died at the age of 87 according to Kyodo News.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Japan\u2019s Corporate Services Price Index (CSPI) surged 3.7% year-on-year in September, matching expectations and marking the highest level 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