FTSE China A50 futures surged over 1%.

SMBC Nikko economists say the BOJ will likely raise its policy rate from 1.00% to 1.25% at the September meeting and expect two further hikes in January and June 2027, taking the rate to 1.75%. They add import-driven inflation pressure should ease after next summer, making a 2.00% peak — above market estimates of the neutral rate — unlikely. OIS markets price an 84% chance of a September hike and imply two additional hikes by early 2027.

On the 20th UN spokesperson Stéphane Dujarric said the Gulf conflict is already weighing on the global economy, disrupting shipping through the Strait of Hormuz and navigation from the Bab al‑Mandeb and Gulf of Aden to the Red Sea. The UN urged parties to resume talks and warned that further military or economic escalation would produce no positive outcomes.