Caustic soda 2701 futures weakened sharply intraday, extending losses to 3.80% as the contract slid to 1,494 yuan/ton, a fresh record low. Turnover was about 3.726 billion yuan. Open interest rose roughly 12,000 lots intraday, reflecting a marked change in positions.

The Bank of Japan is expected to hold policy at Friday’s meeting while declaring its near-14-year push to hit a 2% inflation target largely successful and flagging upside inflation risk, keeping the option of a December rate hike open. Officials are likely to avoid firm guidance on timing or pace, preferring a gradual tightening to balance inflation overshoot risk against the danger of disrupting strained markets, according to people familiar with BOJ thinking. The BOJ may nudge up next fiscal year’s inflation forecast in its quarterly report and signal that underlying inflation is roughly at the 2% target. Policymakers will weigh incoming data and market moves when deciding between a December or January rate increase. Mitsubishi UFJ Morgan Stanley Securities’ chief fixed-income strategist Naomi Muguruma called the moment pivotal, saying the BOJ must both press the accelerator and apply the brakes.

Pakistan central bank governor says time for disinflation to return to the target range will be longer than originally planned.