U.S. Department of Energy: The Trump administration has proposed lending up to nearly one-third of the Northeast’s residential heating oil reserves, totaling 1 million barrels.

Hang Seng Index closed down 1%; Hang Seng Tech Index fell 1.44% as internet names weakened. Tencent Holdings (00700.HK) slid 3.7%; Kuaishou (01024.HK), Meituan (03690.HK) and Bilibili (09626.HK) each dropped over 2%.

1. October 21, Deputy Governor Ryozo Himino (Hawkish) Himi stated that Japan's core inflation is already quite close to the 2% target, and financial conditions remain loose even after last month's interest rate hike. Rising fuel and raw material prices, as well as strong global demand for AI, are increasing price pressures. He warned that if inflation risks materialize due to delayed monetary policy adjustments, it could harm the economy in the long run. Therefore, he supports continuing to raise interest rates. 2. October 19, Governor Kazuo Ueda (Preventing Excessive Inflation) Ueda stated that core inflation is "quite close" to the central bank's 2% target. Tight labor markets, a moderate economic recovery, and strong global demand for AI are all increasing demand-side price pressures. He also pointed out that rising raw material prices and the situation in the Middle East could also push up inflation. If the central bank fails to adjust interest rates in a timely manner, the market may worry about excessive inflation, which could push up long-term interest rates. 3. On October 15th, Board member Junko Koeda (advocating against excessive caution) Koeda believes that given the considerable upside risks to inflation, the Bank of Japan should not be overly cautious about raising interest rates. She also stated that Japan's neutral interest rate level is likely significantly higher than 1%. This means that even though the current policy rate has risen to 1.25%, she still believes there is room for further rate hikes in the future. 4. On October 7th, Board member Ayano Sato (emphasizing a gradual approach) Sato previously opposed a September rate hike, citing insufficient consumer momentum and a lack of significant rise in underlying inflation. However, she also stated that given the current relatively loose financial environment, she supports a phased adjustment of interest rates. She believes that whether and when to raise interest rates should depend on changes in consumption and income.