0137 GMT - If the Bank of Japan raises its policy rate Friday as widely expected and signals a hawkish stance on further monetary tightening, it could trigger a sharp appreciation in the yen over Japan's upcoming long weekend, says Daiwa Securities analyst Eiji Kinouchi. The setup risks mirroring the posthike market turmoil of summer 2024, when a BOJ rate increase, alongside speculation over the Fed's policy path, prompted a surge in the yen and a steep selloff in Tokyo equities, he says. Central bank officials have been more cautious in their market communications since that episode. Japanese financial markets will be closed for national holidays from Monday through Wednesday.
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