US equity futures witnessed a rise on Friday, setting the stage for a promising trading start. The S&P 500 is on track to achieve its best month since February. Futures linked to the index indicated modest gains, following a remarkable 5% increase in November and a staggering 26% surge year-to-date. This upward trajectory was driven by the outstanding performances of tech giants and the inflow of international funds.

Yen's Surge and BOJ's Anticipated Policy Tightening

After Tokyo's inflation rate data came out higher than forecasts one month ago, the yen climbed to 151 per dollar. The annual average consumer inflation rate maintained pressures at an above-forecast level when core inflation, which excluded fresh food and energy prices, was taken into account. This fueled expectations of an early monetary policy tightening by the Bank of Japan (BOJ). Market prices suggest a 60 percent probability of a 25 bps rate hike when the BOJ policymakers meet in December, which could bring a significant policy shift.

International Market Dynamics

European shares remained relatively flat, while mining shares showed signs of advancement. Investors are awaiting the US Federal Reserve's decision and indications that Beijing is willing to boost credit growth. In thin post-Thanksgiving trade, US Treasury yields fell as the dollar faced its worst week in three months. This was in line with the market's anticipation of the Fed's policy switch to a cut.

Asian Market Complexities

Asian markets presented a somewhat intricate picture. Countries like Japan and southern Asian nations were on the list. Chinese equities rose as investors pinned their hopes on policy easing. However, Japan and South Korea experienced declines. South Korea's interest rate cut led to it losing ground. Investors are continuously monitoring impending core inflation reports and the next key milestones of global monetary authorities in this constantly evolving macroeconomic landscape.