LOOK AHEAD: Eurozone Timeline of Key Events (Times BST)

• RES 4: 1.1857 High Feb 18
• RES 3: 1.1797/1849 High May 06 / Apr 17 and the bull trigger
• RES 2: 1.1717 Top of a bear channel drawn from the Apr 17 high 
• RES 1: 1.1686 High May 29
• PRICE: 1.1626 @ 06:17 BST Jun 3
• SUP 1: 1.1553 Base of a bear channel drawn from the Apr 17 high
• SUP 2: 1.1505 Low Apr 6
• SUP 3: 1.1443 Low Mar 30
• SUP 4: 1.1411 and a key supportLow Mar 13 and 16

The recent shallow recovery in EURUSD appears corrective. Resistance at 1.1670, the 50-day EMA, has been pierced. A clear break of it would signal scope for a stronger recovery and expose bear channel resistance at 1.1717. The channel is drawn from 1.1849, the Apr 17 high. Attention is on 1.1603, a 1.00 projection of the Apr 17 -  30 - May 6 price swing, and 1.1557, the bear channel base. A break of both levels would strengthen a bearish threat.

The Nikkei surged past the historic 68,000 mark and hit a new high of 68,786 as the unrelenting global artificial intelligence (AI) boom (Tokyo Elecrtron +13%), coupled with localized domestic economic stimulus and currency tailwinds boost stocks.  Domestic sentiment was significantly boosted by political developments as the government announced a fresh round of targeted fiscal measures designed to insulate businesses and consumers from macroeconomic friction. This saw broad industrial and manufacturing names gain, expanding the rally's breadth beyond just a handful of mega-cap technology firms.  

For China's bourses , the CSI 300 was the outperformer today as  Hard-Tech AI, Information Technology, and Power/Infrastructure utilities drove returns.  Advanced semiconductor supply chains, high-end manufacturing, and physical AI (such as hardware, autonomous driving, and robotics hardware) outperformed broad market indices as the sector was heavily buoyed by structural adjustments making the CSI 300 fundamentally more tech-oriented, raising the immediate weighting of its information technology and communications segments.

After posting gains of +1.1% yesterday, the Jakarta Composite has fallen back to earth with thud today and is down 5% with most sectors suffering.  Early profit taking following yesterday's gains led to a technical squeeze for the index.  Once the JCI broke below 6,000 the sellers took over driving the index down to 5,889 and a new 5-year low.  

The NIFTY 50 has opened down -0.90% as outflows to stocks continue with final May data pointing to significant outflows.  Higher oil prices Wednesday isn't helping the NIFTY 50 which continues to underperform regional peers - down over 10% YTD.  

JGB futures are sharply weaker and at session cheaps, -46 compared to settlement levels.

• (AFP) "Prime Minister Sanae Takaichi's government backed on Wednesday $19 billion in additional spending to help Japanese households struggling with soaring everyday costs driven by the Iran war. The budget could reportedly be passed as soon as Friday in the legislature that is dominated by the ruling Liberal Democratic Party and allies of Takaichi." - BBG
• (DJ via BBG) "Political pressure on the Bank of Japan could intensify if Middle East tensions ease ahead of its June 15-16 meeting, says Nomura Research Institute economist Takahide Kiuchi. Any geopolitical improvement that helps the yen rebound would eliminate concerns that holding interest rates steady might fuel further currency weakness, he says. That scenario could prompt Prime Minister Sanae Takaichi to ramp up behind-the-scenes pressure on the BOJ to forgo a June hike, he adds."
• BOJ Governor Ueda is due to give a speech later today.
• The cash JGB curve has shifted cheaper, with benchmark yields flat to 5bps higher, led by the 10-year. Today’s move pared the rally seen yesterday following the 10-year auction.
• Swaps are sharply richer, with rates 2-10bps lower and swap spreads tighter.
• Tomorrow, the local calendar will see Weekly International Investment Flow data alongside Auction for Enhanced-Liquidity 11-39 YR.