Japan's core consumer price index—which includes gasoline prices but does not include fresh food—rose 3% annually in December, reaching its highest level since August 2023, up from 2.7% in November and matching consensus.

Japan's core consumer prices rose 3.0% in December year-on-year to mark the fastest annual pace in 16 months, likely cementing a central bank rate hike later in the day and retaining bets that borrowing costs will keep rising from ultra-low levels.

The Bank of Japan raised interest rates to a 17-year high of 0.5%, with Bitcoin and major altcoins surging by 3-6%.

The yen strengthened and Japanese government bond yields rose to fresh multi-year highs on Friday after the Bank of Japan hiked interest rates as expected and raised its inflation forecasts, reinforcing views it will push rates up again.