After Israel issued a full evacuation warning, the southern Lebanese city of Tyre was attacked.

Morgan Stanley MUFG Securities says Ueda is unlikely to signal a hawkish surprise beyond what markets have priced at next week’s press conference. The firm's economists and strategists note OIS markets have largely priced BOJ policy to 1.25% by year-end. The report cites rising Middle East uncertainty and recent equity volatility and expects a 25bp policy-rate hike to 1.00% at the June meeting.

UK foreign secretary said missile exchanges between Iran and Israel represented the most dangerous moment since the ceasefire and welcomed their announcement to cease mutual attacks.