Earthquake Response: Japan’s Kumamoto region is still in crisis after a 7.1 quake and a suspected gas blast at Aeon Mall, with the death toll now reported at 30 as rescuers race against heat and aftershocks; thousands remain in shelters and many households still lack power and water. Fiscal & Inflation Policy: Prime Minister Sanae Takaichi is pushing a temporary cut in Japan’s food consumption tax to 1% from April 2027, aiming to blunt price pressure despite worries about public finances. Macro Outlook: Japan’s Cabinet Office cut its growth forecast for FY2026 to 0.9% (from 1.3%) as higher oil prices and yen weakness squeeze households and corporate profits. Currency & Rates: The yen slid past 163 per dollar and the dollar hit a fresh 40-year high as US yields rose and Middle East tensions boosted demand for the greenback. Corporate Earnings: Tokyo Electron reported Q1 net income up 39% and higher sales, while Mizuho posted a 45% profit jump (both reinforcing the chip-led earnings mood). Trade & Logistics: Japan’s six major ports showed a mixed May picture for container volumes, with imports up but exports down. Payments Innovation: KB Kookmin Bank validated cross-border yen token payments with MUFG via BIS-linked Project Agora, signaling momentum for next-gen settlement. Research Cooperation: Japan formally joined the EU’s Horizon Europe program, opening the door for Japanese groups to take part in collaborative funding calls. Tech/Markets: Crypto is moving forward as gumi and SBI launched a ¥3bn crypto fund, while Japan’s crypto rules are set to tighten in 2027.