Asia Intelligence Brief — Friday, May 29, 2026

Core inflation in Tokyo stays below BOJ goal, factory output rebounds

Tokyo's core CPI rose 1.3% YoY in May, missing the BOJ's 2% target for a fourth straight month, even as factory output beat forecasts with a 0.8% rebound driven by AI-related chip equipment demand. Markets are pricing in a BOJ rate hike to 1% next month; tech and manufacturing leaders should monitor Japan's energy-cost pass-through and yen weakness as margin pressure on global supply chains.