Japan Market Daily | Kabutaro & Friends

On May 31, 2026, while major financial markets were closed for Sunday, market participants focused on progress in the tentative U.S.-Iran ceasefire and its impact on energy. Following reports of a 60-day ceasefire extension and the gradual reopening of the Strait of Hormuz, benchmark Brent crude fell to the 92-dollar range and WTI crude moved to the 87-dollar level per barrel, easing inflation fears. In the FX market, safe-haven dollar demand receded, leaving the USD/JPY cross stable in the early 159 range. Meanwhile, economic data released by China's National Bureau of Statistics showed that the official manufacturing purchasing managers' index (PMI) for May fell by 0.9 points from the previous month to 49.5, slipping below the 50-point threshold for the first time in three months. Consequently, while relief over easing Middle East tensions spread, slowing momentum in the world's second-largest economy emerged as a fresh concern.