Known for his dovish policy stance, Nakamura warned that elevated tariffs, particularly those affecting the automotive sector, could negatively impact corporate earnings and broader economic activity. He noted that tightening policy amid an economic downturn could suppress both consumption and investment, especially as Japan’s economy contracted in the first quarter of 2025 for the first time in a year.

In the United Kingdom, GDP expanded by 0.7% quarter-on-quarter in Q1 2025, exceeding forecasts. Growth was driven primarily by the services sector, along with stronger output in transport equipment and machinery. However, construction activity remained unchanged. On the expenditure side, growth was supported by increased capital investment and favorable net trade, with exports rising 3.5%.

Meanwhile, the Euro Area recorded 0.4% GDP growth in Q1 2025, slightly above the historical average of 0.37% since 1995, reflecting resilience amid ongoing economic headwinds.

In bond markets, U.S. 10-year Treasury yields retreated to approximately 4.40%, while German 10-year bond yields also declined to around 2.58%.