CHINA'S XI, TO PUTIN: POLITICAL MUTUAL TRUST BETWEEN TWO SIDES HAS DEEPENED-CCTV

Bank of America Securities has upgraded its view on the yen to neutral from bearish, citing improving structural flow dynamics, even as the currency weakens toward 160 per dollar. Strategist Shusuke Yamada also cut his end-2026 forecast for USD/JPY to 152 from 157. BofA said a bullish yen outlook would require policy or market shifts, including USD/JPY rising to 160, Japan’s 10-year JGB yield nearing 3%, or Brent crude falling below $90 per barrel. The bank also noted that suspected FX intervention totaling as much as ¥10 trillion ($63 billion) may have taken place between late April and early May. Despite persistent weakness driven by rate differentials, BofA highlighted improving fundamentals, including narrowing bank loan-deposit gaps, rising real rates, and stronger Japanese equity performance versus US and European markets, which could support capital inflows and stabilize the currency over time.

Hong Kong is planning to launch a new government-backed gold-clearing system by July, according to people familiar with the matter, as part of its push to become a global bullion trading hub. The system will mirror London’s clearing infrastructure and support unallocated gold accounts, allowing faster and more scalable settlement without requiring ownership of specific bars. The initiative is designed to strengthen Hong Kong’s role in gold trading, financing and storage, with invitations extended to China-friendly central banks and participation from major banks including ICBC, Bank of China, HSBC, JPMorgan and UBS. Hong Kong has also signed a cooperation agreement with the Shanghai Gold Exchange and plans to expand gold storage capacity to 2,000 tons within three years. The Financial Services and the Treasury Bureau said preparations are in the final stage, with trial operations expected within the year.