The Bank of Japan will raise interest rates and adjust the degree of monetary support if improvements in the economy and price conditions continue, Governor Kazuo Ueda said on Wednesday.

Most Asian stocks edged higher on Wednesday tracking overnight rise on Wall Street, but gains were limited as investors remained cautious ahead of key U.S. inflation data, particularly in light of the Federal Reserve's hawkish stance in December.

The dollar's towering rally hit a speed bump on Wednesday as traders turned cautious ahead of a closely watched U.S. consumer inflation report due later in the day, while the yen pulled ahead following remarks from Japan's central bank chief.

The Eurozone is set to see a weak start to 2025 after likely stagnating at the end of last year, according to analysts at Barclays (LON:BARC).

China's exports gained momentum in December, with imports also showing recovery, though strength at the year-end was in part fuelled by factories rushing inventory overseas as they braced for heightened trade risks under a Trump presidency.

China's vehicle exports are expected to grow 5.8% to 6.2 million units this year, cooling from a 19.3% increase in 2024, data from the China Association of Automobile Manufacturers (CAAM) showed on Monday.