International News 05 June 2026
-
BOJ Rate Hike in Focus
The Bank of Japan (BOJ) is widely expected to raise its policy rate again later this month, unless a significant escalation in the Middle East conflict triggers severe volatility across global financial markets. According to sources familiar with internal discussions, rising energy costs driven by the Iran-related conflict have added to inflationary pressures in Japan, reinforcing the case for further monetary tightening. Policymakers are expected to closely monitor developments in the Middle East and their implications for Japan's economy ahead of the BOJ's policy meeting, which concludes on June 16. Market participants currently assign roughly an 80% probability that the BOJ will increase its short-term policy rate to 1.0% from 0.75%. If implemented, the move would bring Japan's interest rate to its highest level since 1995.
India Plans Tax Relief for Foreign Bond Investors
India is preparing to eliminate capital gains tax on foreign portfolio investments in government bonds, a move aimed at attracting greater foreign participation in its debt market, according to sources familiar with the matter. The proposal comes as authorities seek to strengthen capital inflows and support the Indian rupee, which has declined more than 5% year-to-date amid elevated oil prices and persistent foreign outflows from the equity market. Earlier reports from The Economic Times indicated that the Indian cabinet had approved the measure, although the Finance Ministry has yet to issue an official statement. Following the news, India's benchmark government bond yield edged 1 basis point lower to 7.01% in early trading. The timeline for the policy's implementation remains uncertain.
SpaceX Sets IPO Price
SpaceX has set its IPO price at US$135 per share, signaling a highly unconventional approach that challenges the traditional Wall Street bookbuilding process. The decision to disclose the offering price a full week before the share sale is virtually unprecedented among major U.S. IPOs and highlights Elon Musk’s willingness to pursue capital raising on his own terms, even as investors debate the company's lofty valuation. The updated IPO filing confirmed earlier reports that the offering would be priced at US$135 per share. At that level, SpaceX is expected to raise as much as US$75 billion, making it the largest IPO in history. The offering would also value the company at approximately US$1.75 trillion, immediately placing SpaceX among the ten most valuable publicly listed companies in the United States.