Key facts
- The Bank of Japan is expected to raise its policy rate to 1% from 0.75% at its upcoming meeting.
- G7 leaders will convene in Evian, France, for a summit addressing global conflicts and economic issues.
- Myanmar's President Min Aung Hlaing is visiting China for a state visit.
- China is set to release key economic data for May, including industrial output and retail sales.
- Reliance Industries' annual general meeting is scheduled, with potential updates on the Jio spinoff.
The Bank of Japan is anticipated to increase its policy rate to 1% from 0.75% during its upcoming meeting, a move that would signify a significant shift in borrowing costs not seen in three decades. Officials are increasingly viewing higher oil prices, driven by Middle East tensions, as a potential catalyst for broader inflation.
Meanwhile, leaders from the Group of Seven nations, including Japanese Prime Minister Sanae Takaichi, will convene in Evian, France, for a summit. The gathering is expected to be dominated by discussions on the wars in Iran and Ukraine, as well as critical mineral sourcing and global economic imbalances, with China's influence looming large despite its non-participation.
On Monday, Myanmar's President Min Aung Hlaing is set to begin a state visit to China, following his first foreign trip since leading the military regime to India. This visit occurs amidst a period of active diplomacy for Chinese President Xi Jinping, who has recently hosted leaders from the U.S. and Russia. Also on Monday, Shanghai Disneyland will mark its 10th anniversary.
Tuesday's agenda includes the Bank of Japan's policy meeting announcement and the G7 summit. China will release its May economic data, including industrial output and retail sales, which follow a report of stronger-than-expected trade growth and a surge in factory-gate inflation. Monetary policy decisions from Pakistan are also expected.
Wednesday will see the release of Japan's trade data. On Thursday, Indonesia and the Philippines are scheduled to announce their monetary policy decisions, providing insight into how these Southeast Asian economies are managing global uncertainties. Taiwan's monetary policy is also on the schedule.
Friday concludes the week with Reliance Industries holding its annual general meeting, where updates on major projects, including the potential IPO of its digital arm Jio, are anticipated. An exhibition in Taiwan will also open, exploring the history of the pro-democracy Hong Kong newspaper Apple Daily. Japan and Malaysia will release inflation and trade data.