haidi: welcome to daybreak australia. markets have just come online. annabelle: i'm annabelle

droulers in hong kong. we are coming down to asia's major trading opens. tech giants leading a stock rebound on wall street. ai in the spotlight with apple in talks to build googles gemini engine into the iphone and nvidia unveiling its new processes. haidi: the rba is in focus with investors watching tuesday's decision for any sign of a softening in hawkish bias. >> i'm stephen engle outside the bank of japan headquarters in tokyo. it is a momentous day with reports the central bank is poised to end the yield curve control and etf buying as hiking its key rate for the first time in 17 years. haidi: it is a busy day when it comes to the central bank docket. the bank of japan with steve in tokyo. also watching the rba decision. this is the picture as we start out the staggered start to

trading. we are seeing the asx 200 a 10th of 1%. we did co strike a stocks. gaining higher financials and banks led the part of the gain. modest gains. a 10th of 1%. a lot of caution as we did see the rebound in financial stocks. expecting the rba to hold rates at the 12 year high on tuesday. . the focus will be the messaging around the 4.35% level it is staying at. we have seen 425 basis points of hikes since april of 2022. . the largest and fastest tightening in the tightening area. take a look at the drought when it looks at market expectations. markets do not see a full cut playing out until september. the drought so much, june, september and december pricing in the different colored lines. we have heard from the likes of jp morgan and hsbc talking about no rba cuts this year.

that messaging will be key when we hear from the reserve bank of australia. take a look at the other big central bank we are focusing on. it is what we are expecting from the bank of japan. these expectations are building in terms of what we could see from the bank of japan. it is a momentous decision. most investors say it is either today or next month. perhaps that does not matter a great deal for the longer-term trajectory. we did hear reporting from the nikkei suggesting the bank of japan would end yield curve control and etf buying. that is the question of the day. so much focus on what the boj is going to be doing. internally at we are student to take bets on what time it is going to be coming out. here is the outlook we have got for u.s. stocks. overnight it is the countdown to the fed. what we are going to hear from jay powell signaling around rate cuts. . we are seeing changing

expectations. june had been seen most likely until a couple days ago. that is getting priced out as are the number of cuts we can expect for 2024. in the intraday session, it was the focus on tech. we mentioned the news around alphabet with the iphone in the headlights. what i am tracking closely today is nvidia. so much of the rally has been predicated on the success of nvidia. the demand for its ai chip. now the successor to that coming out at the successor event. we will have more on that ahead this out. haidi: let's go back to the highly anticipated boj decision in the next few hours. stephen engle is with us live outside the central bank building in tokyo. this is a potentially monumental day for the bank of japan. >> absolutely. have been at bloomberg 20 plus

years and this is probably the most significant change at the boj in one fell swoop in those 20 years. we have had inflation persistent and we are seeing a lift off perhaps of rates later today when the bank of japan concludes its two day meeting in the building behind me and governor way to will meet the press at the deck at 3:30 local time. i got the alert that the nikkei out with another scoop saying in addition to hiking rates for the first time in 17 years, they will likely be scrapping the yield curve control in place since 2016 and scrapping the etf purchase came which has been in place since 2010 as well as the japan reads as a drop to the stock market. the equity market has done extremely well. it seems all the pieces are in place with inflation as well as the wage negotiations that came

out much higher than expected with the shinto and the vringo on friday much better than expected. perhaps governor ueda and the eight board members have concluded there is a virtuous cycle of inflation and that is backed a wage gains. let's talk about what is expected and going forward what it means for the money markets in japan. let's bring in our next guest. he is with blackrock. the head of japan active investments. thank you for coming up on a chilly spring morning in tokyo. you call this a momentous day. how momentous is it? >> nice to be here>>. certainly a very big day. other forms of highly unconventional monetary policy including etf purchases and

yield curve control happening in one day. . it is a big day. we think it is quite invigorating. it is quite positive. we also this as a sign, and affirmation may be of the fact that japan is changing. that we have entered a regime for growth and strength. still quite uplifting and momentous. >> it removes the hesitancy lingering in this market for some time. there is more certainty >> exiting or stepping back from yield curve control which happened last year was one step. now formerly exiting negative interest rates. this was on the minds of market participants for some time. that will effectively be removed today. >> what is your projection for how they will projected future hikes? how many hikes do you think there will be this year? will they do one and done or two

and pause for a little while? >> we think they are going to engineer a dovish hike. we expect they are going to be careful in their messaging to not disrupt markets. to not alarm markets. and emphasize this is going to be a highly gradual process. they are not rushing into anything. they want to do that to not disrupt orchids. they are able to do that because in japan we don't have an inflation problem. there is nothing the need to come in and fight off. they can afford to be gradual and remain accommodative. >> many hikes this year are you factoring in and went? -- and when? >> we think they can get to a quarter percent higher at the end of this year. it seems inflation conditions and japan are quite robust in a good way. that will allow for more adjustments in monetary policy to -- towards a more normal

state of monetary policy. it is entirely possible they can do another hike or two by the end of this year. >> if there are more successive hikes, it is good for fixed income and the big oak ridges but you feel it is going to be good for the equity market. why is that? >> it is good for markets in general because it increases the vibrancy's of capital markets. interest rates being positive is good for the financial market. it is good for savers. it has those positives. for the equity markets, it is not going to be an issue because interest rates are still going to be very low. talking zero handle. in real terms, substantially negative. though going to be highly accommodative and low and good. >> you don't think all of this is fully priced in into the equity market. there is a long way to go. >> there certainly is. i think the market is highly pricing in and expecting the move today. the move today at least will be a nonevent.

beyond that, the strength of the japanese equity market or japanese core of the economy as a whole has not been fully priced into the markets. i think it is also important to note the world, global investors remain underweight, japanese equities. there is more money that can come into the market. >> what do you expect for the yen? it has not moved much yet. the differential with the fed and elsewhere is substantial. do you expect the yen to appreciate considerably or is it going to be a gradual creep upwards? >> it will likely be gradual in the direction of strength. it is quite undervalued and has room to go up. it is not going to be that big of an event for equity markets. the fx market is a bit of a sideshow for stocks. in our view and should not be a

factor for equity markets. >> you don't think a considerably higher yen is going to dampen corporate profits. and that will dampen the rise we have seen in the nikkei to 40,000. >> we think the move is going to gradual and equity market can shrug off moves in the fx. a review is that the drivers of japanese stock markets today are not the fx. the fx is secondary. it is more the fundamental drivers that are structural in nature, but are real and fundamental that has been driving the strength in japanese equity markets including the shift from deflation to inflation. all those things that are quite real and that are persistent are the main drivers. >> do you think the negotiations and the gains officials were

able to secure, does that represent the inflationary picture or is there still risk? >> we think it is quite real. it is also the second year. wage growth, the highest in 30 years last year. even higher this year. that shows the persistence of these dynamics of wage growth and it is not just wage growth. capex is at all-time highs. companies are feeling better about their businesses. we think that creates a good cycle. >> is today going to be a declaration of victory over deflation or are there policy risks of withdrawing stimulus too prematurely? this happened in the past with the boj. they were absolutely even this created for -- absolutely need the serrated for it. >> the last thing the last thing boj wants to do is to kilis. they will be careful not to do that. move they will make today is

going to be incremental. they will bring rates slightly positive but still very low. the drivers, the momentum around wage growth in capex is strong enough to withstand a sift -- a shift of monetary policy. >> go get some coffee. it is a bit chillier than we were expecting on march 19. . it will get hotter as we get closer to the rate decision. we are all waiting for any guidance from governor ueda that has 3:30 local time press conference. annabelle: julie on the ground but the of anticipating is injecting heat into the day. we are going to looking at all angles of the boj's pivotal decision. stating for discussions with former central bank officials and analysts including the ubs investment bank chief economist.

coming up, nvidia unveils new chips eight aimed at extending its dominance. we keep the theme is going of central banks. the rba looking to extend its rate pause on tuesday. we will have a preview ahead. this is bloomberg. ♪

haidi: take a look at what we are tracking in terms of fx. the yen will be in focus. we could see more of an impact in terms of what the fed does later. this week from the bank of japan. we have seen the yen briefly strengthening before edging lower. the nikkei reported that the boj me change the framework tapping down rates against prevailing market trends and ending stock etf purchases as well. we continue to await for that momentous decision. there is another decision we are watching today that is the rba. potentially less of a big move. we are seeing the yield curve steepening for the fifth day ahead of the decision. the rba is expected to hold rates at the 12 year high on tuesday. the economy continues to show signs of slowing. let's bring in our economics reporter. much has been said about how aggressive, fast, elevated this

regime has been. how much weakness is there in the economy and could that persuade the rba to self its bias? >> we have the gdp data from the last three months of 2023. that was really weak. that followed on a weak third quarter as well. the monthly indicators, the more timely indicators we have gotten in the past couple of months have been pretty weak. retail sales for example, people are not spending that much at an aggregate level. unemployment rate has ticked up. it used to be around 3.6% last year. that has gone up too. people with mortgage, they are hurting. repayments have gone up by a lot. we are seeing the impact on the economy. the question is if it is a big enough impact for the rba to drop their tightening bias today.

haidi: what are we expecting in terms of the statement after? are we going to get any pushback? will we see something that is hawkish? >> the rba is not known to change their statement a lot meeting to meeting. this year has been pretty different. it is a new regime. we have a new governor. we have a new process. it is a two day meeting instead of a one-day meeting. this is the second meeting in the new regime. we are not sure if they are going to change the statement again. if they drop the tightening bias. if they keep everything in tact. we have a press conference now. michelle bullock will have more time to explain the decisions. explained the nuance of the decision or the change in statement as well. they could perhaps be bolder than they have been in tweaking the statement .

haidi: you can get a roundup of the stories you need to know in today's edition of the daybreak. you can customize those settings so you just get the news on the industries and assets you care about. this is bloomberg. ♪

>> this is hopper. hopper changed the world. this is blackrock -- blackwel. haidi: that was the nvidia ceo showing off the new chips aimed at extending his company's dominance at ai computing. i want to put into perspective

this conference nvidia was holding has been compared to and ai woodstock. this gives you a sense of how much optimism there is. how much this is seen as a festival of sorts. given the gains we are seeing come of the run-up for tech stocks through the course of this year, you need to have the positivity to see any sort of huge gains and see that sustained over the course of 2024. we did see the magnificent seven. cat with the last close for the index. a gain of more than 2% overnight. twice the pace of the gains we saw for the nasdaq. futures were coming into the fed decision fairly wait and see mode. as we said, the focus on nvidia, this new processor unveiled. it is one that is the successor to the hopper chip that has already been one of the most prized commodities in the tech world. certainly a lot of focus on nvidia as i said in the session.

lots to be tracking throughout the session today. haidi: that might be a little bit of an understatement. i know what you are trying to allude to the fact we are trying to keep on top of a lot of the major market moving stories. nvidia, ai and we heard about apple and gemini and a number of the headlines affecting the tech space. directing us to where the next leg of the massive rally and that the medic story is going to head to. the other side of the story is watching what the central banks do. we are on rba and boj watch. in terms of bl likin the two, any kind of seismic change i? the changing rate regime, does that create a little bit of a headwind for these highflying stocks in tech and ai? we have not seen much of an

indication that they are impacted. when you talk about the mag seven and adjacent peers, they would be that impacted should we see much of an indication the fed could start moving soon. annabelle: that points to the two things that have been driving market sentiment. the repricing going on because june is being priced out for the fed. you have the reduction in what swaps traders are seeing and the number of basis point cuts you're going to see from jay powell and colleagues. pricing is for 68 basis points for 2024. certainly the ai rally has been what is underpinned all of the strength we have had in wall street through the course of this year. so many different stories we can track in this area. haidi: a lot of grassroots stories.

not just the magnificent seven and the big names. including this one, and indian start up. making the nation's biggest bet on ai. this is a company that has received the first shipment of thousands of coveted nvidia ai chips. the ceo is looking to offer a high performance computer capabilities from data centers in india. >> today india is depending on chips in u.s. or some other country. . either they are not available or they are available at a big cost. india startups, india government, india institutions will be able to use these chips to build their own model. annabelle: we want to get back to the focus on nvidia and the new chip announced. a little bit weaker in after hours. let's bring in our senior tech

editor in san francisco. so much focus on this successor to the hopper chip. telcos through what this new black well chip is and the demand we are likely to see. what it be something that supersedes the demand we have had for the hopper? >> the demand has been so strong for the previous line that it is almost only limited by how much supply they can produce. demand will probably be equal if not greater for this. they're trying to broaden the market for these things in terms of beyond the cloud providers and into more corporations and government clients. they are trying to steadily increase demand for the chip. obviously given the state of ai services and other data centers in general, it does seem like you don't want to say limitless but demand is strong.

haidi: could nvidia be limited by its relatively small scope of customers? >> i think that is maybe long-term one of their big challenges. just trying to sell to a broader base. who needs this powerful a chip at the moment? it is sort of a limited group. they feel like if they can go out and say -- they have a deal with cisco to help sell to a broader range of customers. if they can givens people they need their own ai systems, they certainly can do that. haidi:haidi: our senior editor

annabelle: the boj is widely expected to end its negative right cycle in just a few hours. our coanchor of the china show david is joining us.

this has some different ways you can look at this but what are you focusing on here? david: what is clear and reports have told us enough -- they have told us for a while is the key point that markets have more or less coalesced through expectations of what is going to happen today. you have been talking about this etf buying, yield curve control. what is interesting is ever since expectations of a change to the boj began, we have been tracking this yellow line which is your 10 year young swap. you start to see that diverge from the actual 10 year yield. trustingly enough but not unexpected when the fed started raising rates in 2022. the gap is built along expectations of the boj might be forced to change its policy. recently and to my earlier, the gap between the two has fallen to 2022 levels which to some analysts indicates that any

changes to date have been priced in to the jgb market. that is one point. the other point i want to make is when you look at the currency which has been well behaved recently, maybe on the news we might get more changes from the boj today has started to pick up. this is the yen overnight implied volatility. we have had two boj meetings since december. when was the spike here. the other was january as well. brace for something else. on etf's of course, watch for any changes if they do and etf purchases. here's a look at some of the etf's. annabelle: when you put it in that context, you can see it was traders ahead of the economist in what they are expecting. a have been agitating for some sort of shift. from the economist perspective, it seemed like it was a focus on the wage negotiations and what that number be strong out of it to justify any shift.

ubs is among the market watchers expecting a rate hike from the boj in a few hours. let's get more insights now. the chief japan economist at ubs securities japan. you just recently changed your call as soon a couple days ago. the wages number that came out, was it the headline reading that justified it or was it what you sell for the smaller firms? >> i was surprised not only the headline but the small firms with the firm's less than 300 people. there wage growth over the so-called -- is 3%. 3% which growth is a great number for the boj because it is 2% cpr and 1% real wages. it is a green light for the boj to go ahead. given haidi: they are going to go ahead, it is the focus on the

key rate. the mechanism for how that is calculated, you are also expecting changes to that? what is it currently at how is it likely to change and what is the significance if any? >> to answer your latter question, there will be no significant change. if you look at the rate in a market rate so gaining of the rate is less than 10 basis points. even though the headline number of the policy rate will go from minus zero point one to between zero and 0.1, it is not a 20 basis point rate hike. it is a less than 10 basis point hike in the actual market. haidi: it sounds like a lot of the market is expecting a one and done symbolic move from the bank of japan. the expectation has built up so much. how much more evidence do you think you would want to see before we can declare a virtuous cycle? particularly when it comes to household sentiment.

>> we definitely needed to confirm recovery of the consumption. the consumption has been very weak. in consecutive quarters of the contraction. the real wages is to declining. we have to pick up the consumption. service prices should pick up. still takes time to declare the real victory over the positive feedback between wages and prices. annabelle: if negative rates and yield curve control were to go today, do you think that is going to be enough to unleash the constraints of the yen or do you think what happens to the yen if we go toward 140, does that depend on what we hear from the fed? >> absolutely. it is more important to the fed. boj is moving maximum of 20 basis point change. the fed can move more than 100 in either direction. the fed is much more important for their direction -- for their

prediction. haidi: how much certainty do you hold in terms of the commitment to continue buying jgb's? >> that is a very good question. that is the key answer how the boj will explain this in future operation. saying the boj continued to buy the 6 trillion per month. i think that is not enough. they have to have some guideline. guidance how they maintain this purchase of the bond. that is what i am focusing on. annabelle:annabelle: what about the purchases we see of etf's and reads as well? >> forget about it. definitely stop buying new etf and j reit's. they maintain the current holding. annabelle: maintain the holdings but do you think they would formerly dismantle the program? i agree. the boj only intervene three

times last year to buy etf's. to the need to formally declare an end to that? >> they can maintain the program. they don't buy the new ones. they hold it. it is a matter of how you explain this program. the bottom line is they don't have any intention to sell it. as you were discussing earlier about inflation expectations, do you see any risks given the boj does expect inflation to weaken toward the end of this year to the rates outlook? >> the boj is telling two forces of the inflation dynamic. the import price driven, caused appreciation. the second is wage growth driven more demand flow inflation on-demand services. the boj is expecting the first

force is going to decline in the second force is going to -- it is to balancing on how the dynamics will evolve in the next six to 12 months and if they are price up is services. boj has to say the process is still slow. reminds asian will be slow. -- normalization will be slow. haidi: going back to the psychological effect of the yen, and less we see an extremely dovish fed later this week, we may not see a huge strengthening in the yen. in that case, does that keep the mistake -- keep the lid on domestic sentiment because of how devalued the mystic asset prices have been? >> i think if the line stays between one hundred 45 and 150, do mystic sentiment does not -- much. if it goes one day or something, that is different sentiment.

if it is a gradual change, 145 or something next six months, i don't think that is a big shock for the japanese domestic sentiment. annabelle: some of the people we have spoken to on this program have said perhaps conditions will be there for the boj to cut toyed the end of this year. do you see any chance of a reduction on the horizon even though we get the hike later today? >> the one condition on that is the fed would cut the rates aggressively in the second half of the year. if the u.s. economy enters a recession and they start going to cut for more than 200 basis points to half a year meeting 50 basis point by the fomc, the boj has to do something. i don't know if the boj --

if the u.s. economy enters a recession, with some kind of financial crisis, the boj has to do something to the dovish side. haidi: great to have you with us. chief japan economist at ubs securities japan. much more insight ahead into the boj decision. will be speaking with the former central bank officials in the next hour. stay with us for a look at the market impact. jp morgan securities chief chief japan strategist will be with us. strong wage increases for japanese labor may be the trigger needed. we got that data toward the end of last week. to see some gains in the small-cap stocks. firms have been humbled by focus consumer spending for years. are asia stocks reporter joins us from tokyo. presumably wage increases leads to improved household spending

investors are looking to trade around this somatic -- this thematic. >> exactly. the surprisingly strong wage negotiation involves putting a fresh focus on japanese small-cap shares. they have been underperforming the overall market very sharply this year. if you look at the small-cap index, the gains is about half of the largest companies like the topics core 30. if you look at sectors like food companies, transportation, air travel, the share has risen somewhere between two to 5% compared to 20% gains in bigger companies. obviously investors are now looking at whether they are going to catch up with the markets rally now that it is

becoming more certain the real wages is going to rise from april. annabelle: not quite the gains we have seen in small caps for some of the bigger names on the topix index. are they still considered cheap? tell us about their valuation? >> this is an interesting point. historically, small caps tend to have a higher valuation compared to large caps. at the moment, japanese small caps are creating a premium of large companies to it you think we are going back to the historical pattern, then small caps look very cheap at the moment. they are trading at 16 times earnings. that is below 17 times earnings for large caps. if you think there will be mean

reversion from now, it is a good time to buy small caps. annabelle: our senior asia stock reporter. a big countdown to the open of tokyo starting to trade 15 minutes from now. one stock that has been suspended in mainland china and hong kong is evergrande. and is being accused of falsely inflating revenue by more than $78 billion in the two years leading up to its failure. let's bring in our asia investing editor. lots of twist and turns in this case. talk us through the accusations and the penalties that have been put forward by the regulator. >> good morning. the accusations are basically for massive fraud here. $78 billion. that is an enormous figure. the concerns are revenue reported for the year 2019 and

2020 so it is before the real estate prices erupted in china and evergrande specifically. what has happened is the regulator has put most of the blame on the founder of evergrande who is under police control pick he has been effectively detained by police since september. these allegations are being made by the securities regulator. it is a civil case. he is being fined. the former ceo and cfo have also faced similar bans. the allegations are enormous. $70 billion of revenue fraud that has been allegedly inflated here. this is a civil case. there is probably more to come.

haidi: could more to come be criminal allegations or criminal cases? >> that seems to be the next step without preempting anything here. he has been under police detention since september. the civil case has been built and you would have to assume the police building a case against him. given the scale of the alleged fraud here. the inflation of the revenue figures and that is being squarely put on the chairman. it does not look good for him. haidi: the latest on evergrande. we have more ahead on daybreak australia. this is bloomber. ♪

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you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh haidi: a new report by oxford economics says emissions are not dropping fast enough to reach the 2030 target. more on this. there likely to miss it by a couple years. can government policy change this? >> in the short-term, governments across australia state and federal are focusing on the power sector. there is a whole variety of mechanisms, policies and targets aiming to decarbonizing the power sector in australia. the federal government is getting 82 percent renewable penetration by 2030 and has

promised to support 32 gigawatts of renewable capacity and storage in the years to come. some states are a lot more ambitious like south australia which is targeting to reach 100% renewable penetration by 2027. states are going about this in different ways. new south wales and the federal government are awarding contracts to renewable and storage products -- storage projects. which do you risks these assets and this can spur a lot of private investment into the market. states like vitoria and queensland are directly investing in renewables and storage. this is through state under buddies. victoria is supporting -- has billions dollars of funding behind it to do so. annabelle: you mention south australia and what it is doing in this space. does that mean state government is the one leading the way here? are there things other states or

the federal government can take away from that? >> bloomberg any of have ranked all the states and the federal government in australia based on how their policy is supporting the uptick of renewables. what we have found is new south wales comes out on top. we have ranked of these governments based on a few different criteria. things like the level of ambition. these policies in line with what is needed for net zero? as well as the amount of funding. whether they are transparent and whether they are legislated. new south wales has started the bi auction process which i mentioned helps de-risk investment. policy is transparent and it is on track for what is required for net zero. that is why it comes out on top. the victorian government infidel pro-government rank in the second place. they both get full points for

ambition. the northern territory comes in last simply because they don't have enough substantial policy to support for their of renewables going forward. haidi: that uptick, could it potentially further support uptick or are there we are talking about? >> the are a lot of factors that can support greater renewables outside of pure policy alone. one big area we are. . looking at is hydrogen australia has. big ambitions of becoming a hydrogen superpower and a green hydrogen superpower. for that we will need a lot of renewable energy supply. there is a lot of policy around hydrogen today. that alone could require an additional 4.5 gigawatts of capacity. that is already on top of the 23 gigawatts of renewable capacity we currently see online. this could be a huge driving force. at the same time, there are a lot of challenges and bottlenecks for the energy

industry. things like the grades are taking a long time to build. development to approvals are taking a long time for renewable energy projects. projects are not as cheap to build as they once were. we are seeing a lot of headwinds in the industry. despite a lot of policy and ambition, there are a lot of challenges governments and industries will have to grapple with. haidi: our bloomberg nef associate. take a look at another story when it comes to renewables. bloomberg is being told china's green energy technology plans to cut as much as 30% of its workforce. that would signal an acceleration of the reductions that began in november. when they started laying off management trainees and factory hires. the largest manufacturer will affect about 5% of employees. more ahead on daybreak australia. this is bloomberg. ♪

haidi: take a look at how we are trading almost an hour into the start of the session in sydney. not doing much when it comes to australian stocks very cautious ahead of the rba decision. we are expecting the rba to hold rates at the 12 your high after the meeting. the economy is showin

signs of further slowingg watching for the narrative of whether there is a softening of hawkish buyers despite the cash rate many at 4.35% for a 3rd street meeting. in terms of the aussie dollar, nothing too much of a move when it comes to the aussie dollar. i one are prices falling under the $100 floor in sustained ongoing weakness in the chinese economy. much more will depend as goes for the yen in terms of what we hear from the fed. is there an exceptionally dovish fed we get from later on this week. that will see more of an impact when it comes to where the aussie dollar goes from here. sitting at 6556. we are watching the boj but a lot of what happens with these currencies does depend on the u.s. central bank. annabelle: and what sort of messaging we get from jay powell on wednesday. this is the outlook we have got here for japanese assets.

we have the nikkei pointing to a slight drop at the open. we have seen a record-setting run for japanese stocks. looking at the different corners of the market that could benefit the most. financials. banks, brokerages. small-cap stocks could be playing into this. we are hearing from the finance minister. he is speaking in tokyo saying wage hikes have shown unprecedented increase. that is sending a good signal about the japanese economy. the strength of salary gains is something that has changed the views of most economists including the likes of ubs this hour that had earlier seen the boj staying on hold. after we had the negotiations being announced, that is when they pivoted and said we will see a hike later today. japanese assets looking like this. gains priced in for the topix index at the open. haidi: it will be interesting to

see how this record-setting rally of a run we have seen for japan stocks potentially at risk a bit from the bank of japan outperforming global peers. that has been helped along by some of the loosest on a terry policy in the world. perhaps we have seen a peak for that. take a look at what we are tracking financials. traders anticipating an end to the negative rates cycle and also potentially the etf program. tech stocks in focus. . nvidia unveiling the new chips aimed at extending the company's dominance in ai computing. much more to come in the next hour. ♪

her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we got him under a new plan. but then they unexpectedly unraveled their "price lock" guarantee. which has made him, a bit... unruly. you called yourself the "un-carrier". you sing about "price lock" on those commercials. "the price lock, the price lock..." so, if you could change the price, change the name! it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for.

>> this is daybreak asia that we are counting down to the major

market opens and there are a few different stories but one main one we will focus on today is the bank of japan and if we will see the first rate hikes 2007 and a decision will be at 11:00 a.m. tokyo time. the longer it extends depends on the difference in policy changes. haidi: historically it has been really interesting looking at the timing. the later the decision comes, the more exciting it could be. we are watching the rba on rba decision day. we are not expecting any change or easing from them yet but let's get to the markets on what could be a momentous day for japanese markets. annabelle: it is the focus on what the boj does later in terms of the key rate.