Japan May unemployment rate due in 10 minutes.

Japan's government monthly economic report on Tuesday retained a "mild recovery" assessment, saying expansion still has room to continue. The May activity index, due July 7, is expected to show 72 consecutive months of growth; if June and July readings also indicate expansion, the current cycle would exceed the prior 73-month record. Consumption and trade have underpinned a strong start to the year, with demand for AI-related products a key support for exports. Household spending remains uncertain as inflation erodes purchasing power. Dai-ichi Life Research Institute chief economist Toshihiro Nagahama, an independent member of a government economic and fiscal advisory council, said generative-AI investment and resilient production activity make a near-term recession unlikely.

ECB chief economist LANE said oil prices could remain above pre-war levels as energy firms and governments rebuild inventories, which would sustain upward pressure on inflation. He noted Brent crude briefly fell to pre-war levels last week, but demand for restocking may keep prices elevated. LANE added that while the ECB welcomes lower oil prices, oil may stay above pre-war levels for several years, imposing persistent cost-push pressure on the economy.