Japan’s Topix stock index is set for its biggest overhaul, with analysts estimating that more than 600 companies—over a third of its constituents—could be phased out. The removals would apply to firms whose free-float market capitalization ranks in the bottom 3% of Tokyo Stock Exchange-listed companies in August, according to analysts’ estimates. The changes are scheduled to be implemented in stages over two years beginning in October. Passive funds tracking Topix are estimated to account for about $1 trillion, and the overhaul aims to reduce the index’s exposure to small and illiquid stocks.

Europe is facing one of its most severe wildfire seasons in recent years, with parts of France, Spain and Greece hit by major blazes and about 220,000 people evacuated in France. France’s total losses are estimated at €10 billion to €15 billion, with insured losses in the several-billion-euro range, according to credit ratings agency Morningstar DBRS. The scale of the damage is highlighting how climate-related catastrophes are straining traditional insurance systems, without pointing to any specific listed companies or tradable traditional assets.

Fanuc said orders in the June quarter jumped 37% year on year and it lifted its full-year operating profit forecast by about 3% to ¥218 billion ($1.4 billion), implying 19% growth. The guidance still fell short of the average analyst estimate for a 23% rise. Fanuc’s ADR (FANUY) dropped 19% during Tokyo trading, marking its biggest intraday decline since 1986, and the stock is down about 3% year to date.

Vietnamese police have uncovered the country’s largest diamond smuggling case, involving more than 30,000 diamonds valued at about $57 million. Investigators say the network sourced stones in India, routed them through Hong Kong, and brought them into Vietnam using concealed methods. The diamonds were then altered in local labs by changing GIA codes and issuing forged high-grade certificates to sell them at inflated prices. The scandal has shaken confidence in Ho Chi Minh City’s jewelry district, triggering a rush by consumers to sell certified diamonds and prompting dozens of shops to suspend operations.

Japan’s finance ministry and the U.S. Treasury have confirmed coordinated intervention to support the yen, with Japan suspected of deploying $58.97 billion in a single day to buy the currency. U.S. officials also signaled they could enter the market, and a photo showed Treasury Secretary Scott Bessent with a handwritten note reading, “Buy Japanese Yen (JPY) $5–10 bil.” Combined with the Bank of Japan’s June rate increase to a 31-year high of 1%, the steps provide tangible support for the yen. The move directly targets FX markets, with the yen and the dollar/yen pair at the center of the impact.

A handwritten note seen during the Camp David U.S.-Japan-South Korea summit indicated U.S. Treasury officials were considering buying $5 billion to $10 billion worth of Japanese yen. The photo was made public at 11:33 ET, and the dollar fell about 0.8% versus the yen over the next roughly 45 minutes, sliding from 158.9 to 157.6. The disclosure was described as the first U.S. signal of potential unilateral yen intervention since the 2011 G7 coordinated action, stoking expectations for a stronger yen.

Japan Prime Minister Sanae Takaichi said the government will temporarily cut the consumption tax on food and beverages from 8% to 1% for two years starting next April. The move would reduce annual revenue by about ¥5 trillion ($30.6 billion). To keep its pledge of a net-zero overall consumption tax reduction, the government plans a benefits program that would provide ¥600 billion a year to families in need.

A Japanese labor ministry advisory panel recommended raising the nationwide average minimum hourly wage by 4.9% in fiscal 2024 to ¥1,176, the second-largest increase on record. The higher wage floor is expected to be rolled out in stages from October once regional authorities set their own rates. Separately, major unions secured annual pay hikes above 5% for a third straight year. The combination has reinforced market expectations for persistent domestic inflation and a path toward further Bank of Japan rate increases, lending fundamental support to the yen and the Nikkei index.

Germany’s draft budget plans to reduce munitions spending to €9.6 billion in 2027 from €11 billion in 2026, shifting funding toward other defense applications. The change could weigh on Rheinmetall, whose core business is centered on tanks, artillery and ammunition. The company’s shares are down more than 30% this year, reflecting investor concerns about a potential policy-driven pullback and technological substitution.