Japan retail sales rose for a third consecutive month in May, up 1.9% MoM and 5.3% YoY, driven by wage gains and STATE AID that have eased household cost pressures. Despite growing concern the Iran war could lift prices, consumer demand remains firm as wage growth has long outpaced inf and subsidies from Prime Minister Sanae Takaichi are helping households sustain spending.

China A-share STAR 50 index pulled back into the red, down about 0.7% after earlier jumping more than 4%. Constituents Yuanjie Technology, Shengyi Electronics and Jinghe Integration were the biggest decliners.

MOFCOM spokesperson said on Feb. 24, 2026 China added 20 Japanese entities, including Mitsubishi Shipbuilding Co., Ltd., to its export-control list and placed another 20 Japanese entities, including Subaru Corporation, on a watchlist. MOFCOM said the measures target a limited number of entities and apply only to dual-use items, are lawful, do not affect normal China–Japan trade, and that law-abiding Japanese firms need not be concerned; Beijing said the steps are intended to deter Japanese re-militarization and nuclear ambitions.