Fed's Williams says we are roughly within the range of ample reserves.

Japan’s May core machinery orders fell 12.4% MoM, but a Norinchukin Research Institute economist said the decline mainly reflects a normalization after April’s 8.7% gain rather than a deterioration in investment fundamentals. He cited robust corporate profits, AI-related spending, labour shortages and market expectations for Prime Minister Sanae Takaichi’s growth agenda as ongoing support for capital expenditure, and added that if tensions with Iran ease, machinery orders and other capex indicators are likely to remain firm.

Taiwanese media reported Taiwan's military held its first 'joint defense' exercise this week, simulating detection of enemy vessels entering territorial waters. Taiwan Affairs Office spokesperson Zhu Fenglian said the DPP's efforts to use force to pursue 'Taiwan independence' escalate cross‑strait tensions and are the primary cause of instability. She added that, faced with the People's Liberation Army's strength, the drills are mere posturing, will not change the inevitable defeat of 'Taiwan independence', and cannot stop China's inevitable reunification.