Tokyo inflation fell to 1.8 percent in February, the lowest level in more than a year, largely due to energy subsidies from the government of Sanae Takaichi. Despite this decline, core inflation excluding energy rose to 2.5 percent and remained above the 2 percent target, indicating that underlying price pressures persist. This situation has complicated policy communication for the Bank of Japan because signs of cooling inflation are appearing alongside continued underlying momentum. Markets still raise the possibility of rate hikes in the coming months, although the central bank is likely to act cautiously while assessing policy effects.

JPMorgan predicted that if the new US crypto market structure legislation is approved by mid year, the crypto market could strengthen in the second half of 2026. The plan seeks to create a transparent regulatory framework for digital assets, but it is moving slowly in the Senate due to disagreements. One of the main challenges is whether platforms such as Coinbase Global Inc. should be allowed to pay yields to stablecoin holders, something banks view as a risk to financial stability. Matt Hougan says crypto downturns usually end gradually and with volatility, and a rapid price rebound appears unlikely.

Goldman Sachs has forecast that US inflation for February will be lower than market expectations, with core CPI rising about 0.17% month-on-month (below the 0.2% estimate) and annual core inflation at 2.42%. Falling prices for used cars, auto insurance, and moderation in housing inflation are the main factors softening price pressures, although tariffs may exert mild upward pressure. These data could influence the Federal Reserve's monetary policy path and bond yields, while supporting risk assets.

Following the assassination of Ayatollah Khamenei, the former leader of the Islamic Republic, the regime announced Mojtaba Khamenei as his successor. However, several days later, he has not delivered any speech or statement clarifying his positions. Trump has repeatedly called Mojtaba Khamenei’s leadership unacceptable, stating, “we will see what happens.” According to reports, Mojtaba Khamenei was seriously injured in the first-day attack, and his health status remains unclear. Pete Hegseth, the US Secretary of Defense, has also not commented on his condition. Meanwhile, attacks from both sides continue, and early Wednesday one branch of Bank Sepah in Iran was attacked. In response, a spokesperson for Khatam al-Anbiya Headquarters threatened that Israeli and American banks in the region would be targeted.