South Korea's finance minister said excessive volatility in the foreign-exchange market is undesirable.

CSC Financial, citing China Index Academy data, said average secondhand residential prices across 100 cities fell 0.32% MoM in May, a 0.14ppt improvement from April, and were down 7.99% YoY, a 0.35ppt narrowing. Shanghai secondhand prices have risen for three consecutive months, indicating the market is moving toward stabilization. This week Poly Real Estate won a Nanshan, Shenzhen residential parcel for 57.7 bln yuan at a 150.7% premium, setting a Shenzhen record floor price of 109,000 yuan/sq.m; CSC said demand for premium plots in core cities remains strong.

With the Iran war fuelling global inflation, the ECB is expected to raise policy rates by 25bp next week, making it the first major G7 central bank to tighten. Markets price at least one further hike this year. By contrast, the BOC may hold, and the Fed and BoE are seen likely to remain on hold this month as they assess the conflict’s impact. ECB officials say the move aims to prevent inflation becoming entrenched, but further tightening will weigh on an already-weak euro-area economy. ECB President Lagarde may signal next steps at the post-decision press conference. The ECB will publish quarterly economic projections that model alternative energy-shock scenarios.