Japan's finance minister KATAYAMA said the government will review spending and revenue to ensure market credibility.

Markets overwhelmingly expect the Bank of Japan to raise rates by 25bps this week; that would be the quickest increase in the current tightening cycle and is largely priced in. Markets had already factored in a Fed decision that could mark the first policy tightening in more than three years. A surge in energy prices, yen volatility, rising bond yields and implicit US policy pressure have traders scrutinizing BoJ tone and guidance for signs of accelerated tightening versus a gradual approach. Traders view BoJ officials’ remarks and comments from Bessent as effectively locking in a September outcome, and some see a non-negligible chance of a larger-than-usual hike. Insiders say Japan’s underlying inflation is close to 2%, increasing policymakers’ urgency to rein in price pressures compared with baseline trends.

Saudi outlet Alhadath reports Iraq signed an agreement with France to procure French military equipment to "modernize Iraq's defense capabilities".