By Leika Kihara and Satoshi Sugiyama TOKYO (Reuters) -Core inflation in Japan's capital accelerated in December while services inflation held steady, data showed on Friday, keeping alive market expectations for a near-term interest rate hike.

Rising Federal deficits and debt, coupled with potential Trump tariffs, could exacerbate inflation, forcing the Fed to hike rates, negatively impacting the stock market.

Inflation in Tokyo accelerated for a second month in December, as the government temporarily phased out utility subsidies, a result that will likely support expectations of an interest rate hike next year.

Turkey's central bank cut its key interest rate by 250 basis points to 47.5% on Thursday, a bit more than expected, launching an easing cycle meant to leave behind protracted economic turmoil and a cost-of-living crisis.

Turkey’s central bank lowered its main interest rate for the first time in almost two years, pointing to slower consumer demand and the currency’s strength for a larger-than-expected cut of 250 basis points.