Kyodo reports Japan's debt-servicing costs will rise 17.1% to a record ¥36.6386 trillion in fiscal 2027/28.

WTI crude fell back below $84/bbl, down 0.66% intraday.

Morgan Stanley strategist Michael Wilson says a further sharp rise in oil prices is the biggest risk to U.S. equities and recommends using energy stocks to hedge portfolio risk. He warned higher oil could push yields up and ultimately force the Fed to act, noting Fed chair Kevin Warsh is seeking to return disinflation to target. "By then, more responsibility will fall on the Fed rather than the Treasury," he said. "We have no doubt the Fed will ultimately respond, but may not act before markets suffer additional volatility." Wilson recommends positioning in energy names as an oil hedge; Exxon Mobil Corp and Chevron Corp are both up more than 30% YTD, over twice the S&P 500's gain. He reiterated a preference for so‑called "high-quality stocks"—companies with more stable earnings, higher margins and stronger operating efficiency.