✅ Asia Forex Market Report | May 22, 2026 Asian equities traded higher on Friday in a relatively calm geopolitical session, while one of the week’s most important data points hit the tape: Japan’s core inflation cooled to its lowest level in four years, reigniting debate over the Bank of Japan’s next policy move. 🇮🇷 Iran 🔹 No major escalation in Iran-related war headlines. 🔹 Tehran–Washington talks continue through Pakistani mediation, focused on building a framework for a potential agreement. 🔹 A senior Iranian source said: “No deal yet, but the gaps have narrowed.” 🇯🇵 Japan 🔹 Japan’s core CPI for April came in at 1.4%, below the 1.7% forecast and the weakest since March 2022. 🔹 Core-core inflation (excluding food and energy) slowed to 1.9%, the lowest since July 2024. 🔹 Analysts say the drop is largely driven by energy and education subsidies—not true disinflation. 🔹 Despite softer data, expectations for a June rate hike remain alive. 📈 Asian Equities 🔹 Japan’s Nikkei surged over 2%, leading the region. 🔹 Chinese indexes gained around 0.2%. 🔹 Hong Kong rose 0.8%. 💱 FX Markets 🔹 Major FX pairs traded in tight ranges as traders stayed cautious ahead of the U.S. Memorial Day holiday. 🌍 Other Key Developments 🔹 Reuters poll: RBNZ is expected to hold rates at 2.25%, though most markets still expect hikes by September. 🔹 ING still expects a BOJ hike in June despite softer inflation data. 🔹 China softened its tone on foreign investment in tech. 🔹 Oil is expected to remain near $100 as Iran-related supply risks offset weaker demand. 🔹 Alberta, Canada will hold a referendum in October on starting a separation process. 🔹 India’s RBI posted a record ₹3.05 trillion transfer to the government. 🔹 PBOC set the $USDCNY fixing at 6.8373. 🇺🇸 U.S. Markets 🔹 U.S. trading activity may be lighter today ahead of Memorial Day, with markets closed Monday. 🔹 Trump will officially swear in Kevin Warsh as Federal Reserve Chair today, followed by a speech at Rockland Colleg #USIranNukeDeadlock