At a Thursday meeting, Bank of Japan branch chiefs said Japan's economy remains broadly resilient despite Middle East tensions, rising oil and a weak yen. They noted geopolitical-driven logistics disruptions and raw-material shortages have weighed on exports and production, but that the risk of a sharp downturn has eased as firms shift sourcing and adjust shipping routes. The branch assessment could reinforce short-term hawkish pressure; overnight index swaps currently price at least one BOJ rat

Morgan Stanley cut Xiaomi Group (01810.HK) target price by 29% to HKD32 from HKD45 and maintained an Overweight rating, citing lower EV delivery assumptions and weaker smartphone sales that slow MAU growth and trim its internet-services valuation. MS now projects ~100,000 EV deliveries in 2Q 2026 and ~180,000 in 1H 2026—about 33% of Xiaomi’s 550,000 full-year target—and says the company is unlikely to hit the 550,000 target even with planned H2 product launches. The bank lowered its EV delivery forecast for this year to 500,000 from 580,000 and cut the 2027 forecast to 700,000 from 750,000. MS also estimates Xiaomi’s AI-related investments are conservatively worth RMB32 billion and could re-rate materially if profit growth resumes.

China's STAR 50 index gained over 8%; only two constituents declined.