Kevin Buckland

The fate of the sharpest yen rally in 18 months rests on the Bank of Japan breaking free of its cautious rate-hiking path, though it risks a sharp reversal if the currency again ​succumbs to the forces that dragged it to 40-year lows in July.

A look at the day ahead in European and global markets from Kevin Buckland

Japan's benchmark 10-year bond yield hit 3% on Tuesday for the ​first time since September 1996, pushed higher by investor concerns about inflation, fiscal health and mounting pressure on the central bank to ‌raise interest rates faster.

A selloff in global bond markets deepened on Tuesday, reflecting investor angst over inflation and government debt levels that stand to inflict fresh pain on consumers and businesses.

Japanese authorities spent a ​record 15.4 trillion yen ($96.5 billion) intervening in foreign exchange markets over the past month to support the ‌local currency, Finance Ministry data showed on Friday.

Japan's benchmark 10-year government bond yield climbed to a three-decade high on Tuesday as a stalemate in ​the Middle East conflict stoked inflation worries and reinforced speculation about ‌a near-term Bank of Japan interest-rate increase.

Chinese regulators have issued guidance to some banks barring them from conducting bill re-discount ​operations at rates below 0.5%, sources said on ‌Tuesday, as regulators move to rein in aggressive bill buying amid weak loan demand.

Chinese memory chipmaker ChangXin Memory Technologies has signed a long-term supply agreement with Tencent Holdings worth ​more than 20 billion yuan ahead of its blockbuster stock market debut, according to three people with knowledge of the matter.

Honda is ‌seeking to recover from costly strategic missteps after posting its first annual loss in seven decades last month.

China is expected to keep benchmark lending rates unchanged for a 13th consecutive month in June, a Reuters survey showed, as a ​K-shaped divergence in the broad economy persists.