Yen rallies on rate hike bets as equity markets swing [Video]

The yen rallied Friday after forecast-busting inflation data out of Tokyo boosted talk of another Japanese interest rate cut next month, while equity markets were mixed as traders weigh the economic outlook during a second Trump administration.

With Wall Street closed for the Thanksgiving break, there were few catalysts to drive business heading into the weekend and at the end of a rollercoaster month dominated by uncertainty in the wake of Donald Trump’s election victory.

Traders are tracking developments surrounding the tycoon as he builds a hawkish cabinet and outlines his plans, including a threat to hammer China, Canada and Mexico with hefty tariffs on his first day.

Eyes were also on Japan, where figures showed consumer prices in Tokyo — seen as a bellwether for the country — jumped to 2.6 percent in November, well up from October and much more than expected.

The news ignited speculation the central …