- Japan's current account surplus rose to 39,683 billion yen in May 2026, an increase from 33,205 billion yen year-on-year, but below the market forecast of 41,210 billion yen.
- The goods account shifted from a deficit of 4,971 billion yen to a slight surplus of 70 billion yen, with exports growing by 14.7% compared to an 8.1% rise in imports.
- Meanwhile, the primary income surplus increased from 41,802 billion yen to 42,756 billion yen, while the secondary income deficit narrowed from 4,935 billion yen to 3,040 billion yen.
- Tokyo's core CPI rose 1.3% in May, a decrease from April’s 1.5%, supported by subsidies for energy and education.
- The Nikkei 225 index remained robust above 65,700, driven by better-than-expected retail sales, industrial output, and job data.
- The Bank of Japan is at a policy crossroads, considering a rate hike in July amid subdued inflation and risks from oil prices and a weak yen.
