AI & Strategic Investment: Japan is drafting plans for about 370 trillion yen in AI and other key sector investment by FY2040, spanning 17 areas like semiconductors, shipbuilding and critical minerals, with public-private funding. Monetary Policy Watch: The BOJ’s rate hike to 1% is shifting focus toward inflation risk, and an ex-BOJ policymaker says another hike could come twice by March. Inflation & Cost Pressure: Japan’s core inflation held at 1.4% in May as subsidies cushioned energy costs, keeping the BOJ’s next move in focus. FX & Intervention Risk: The yen is near multi-decade lows despite the BOJ hike, with markets watching for possible yen-selling intervention. Trade & Industry: Japan launched an anti-dumping probe into nickel-based stainless steel imports from China and Taiwan. Energy & Shipping: JERA signed charters with MOL and NYK for ammonia carriers to import low-carbon ammonia to Japan, targeting service by 2029. Markets: Japan’s Nikkei hit a record high on AI and chip buying after a US semiconductor rally. Corporate & Finance: Nippon Steel is continuing major US Steel upgrades after last year’s acquisition, while Japan’s Post Office scandal continues to draw pressure on Fujitsu for compensation payments.