Welcome to your morning briefing, delivering the latest news from Hong Kong and around the globe. From local happenings and major events to entertainment and special offers, we have it all covered. Let this fresh cup of information energize your day!

Morning Headlines

On June 2nd, the Forbes real-time billionaire list revealed that Softbank Group Corp founder and CEO Masayoshi Son's net worth has climbed to $100.7 billion, reclaiming his position as Asia's wealthiest individual. The company he leads has also surpassed Toyota to become Japan's most valuable listed company. This Korean-Japanese entrepreneur is renowned for his sharp investment acumen, famously making his name with an early investment in Alibaba. He is now placing a significant bet on the artificial intelligence sector, aiming to build the next super-empire. Indian billionaires like Mukesh Ambani and Gautam Adani had long dominated the top Asian ranks, but as of June 2nd's data, they currently trail behind Son.

Entering June, the Japanese stock market has surged. Shares of Son's Softbank Group Corp have risen sharply, buoyed by the soaring stock price of chip designer ARM Holdings and rumors of an OpenAI IPO. On June 1st, SoftBank's stock price jumped as much as 14.71%, pushing its market capitalization to 48 trillion yen (approximately $306 billion).

Finance and Economics

With Middle East tensions persisting, Iran announced in the early hours that it had retaliated with missiles against two rounds of US-Israeli aggression. The news triggered a slight increase in international crude oil futures prices. The latest price for London Brent crude futures is $96.83 per barrel, up nearly 1%. Overnight, US stock gains were modest, yet the three major indices still refreshed their historical highs, with the S&P 500 closing above the 7600-point mark for the first time. At the close, the Dow Jones Industrial Average rose 228.91 points, or 0.45%, to 51,307.79; the Nasdaq Composite added 7.09 points, or 0.03%, to 27,093.90; and the S&P 500 gained 9.94 points, or 0.13%, to 7,609.90.

The Census and Statistics Department announced that the provisional estimate of total retail sales value for April this year was $31.4 billion, representing a year-on-year increase of 8.6%, which was lower than the market's expected growth of 13.7%. The revised estimate for March showed a year-on-year rise of 12.8%. For the first four months of the year combined, the total retail sales value increased by 11.3% compared to the same period last year. Although the overall figure was slightly below expectations, online sales performance remained robust. The provisional estimate for online retail sales value in April was $3 billion, accounting for 9.7% of the total retail sales value and showing a significant year-on-year increase of 30.6%.

Cathay Pacific announced plans to launch direct flights to Almaty, the commercial and cultural center of Kazakhstan, in the first quarter of 2027. Cathay intends to operate three weekly flights using Airbus A330-300 wide-body aircraft, which would be the only direct air service connecting Hong Kong, China, with Kazakhstan.

On the 2nd, The Hong Kong University of Science and Technology signed a strategic cooperation agreement with Suzhou CalmCar to jointly establish the HKUST Physical AI Innovation Center, aiming to help Hong Kong become a key strategic hub for national physical AI innovation. CalmCar stated that the establishment of the innovation center is not only a milestone in university-enterprise collaboration but also a model for technological exchange and innovation between Shanghai and Hong Kong.

Everbright Securities International has set a new target for the Hang Seng Index at 28,000 points. Based on Tuesday's (2nd) closing level of 26,038 points, this implies a potential upside of approximately 7.5%. The bank's securities strategist, Ng Lai-yin, stated that when setting the latest Hang Seng Index target, factors such as potential US interest rate reversals were considered. However, he believes interest rates are not the sole factor influencing the Hong Kong stock market's performance, noting that "even when US interest rates are stable, Hong Kong stocks can still exhibit significant volatility."

The specific classification loan ratio, which reflects the asset quality of Hong Kong banks, remains persistently high. Gary Ng, Senior Economist for Asia Pacific at Natixis, believes that in the short term, while it may not rise further, a rapid improvement is also unlikely. "Especially loans from the commercial real estate sector are a hidden risk for the credit quality of Hong Kong banks," he said, adding that he believes Hong Kong banks will continue to handle these through loan restructuring and write-offs.

In the Tokyo foreign exchange market, the yen exchange rate weakened again, with the USD/JPY rate climbing to a high of 159.99. On April 30th, the yen rate once touched a low of 160.7 yen per US dollar. To curb the yen's persistent depreciation, the Japanese government and central bank conducted a market intervention that day, buying yen and selling dollars. The Japanese government also conducted related interventions during the May Golden Week holiday. The yen exchange rate quickly rose to the 155-yen range per dollar following the intervention measures, but it has weakened again recently.

The European Central Bank reported on the 2nd that by the end of 2025, gold's share of total global official reserve assets had risen to 27%, while the share of US Treasury securities over the same period fell to 22%. Gold has become the largest asset in global official reserves.

Hong Kong News

The Hong Kong Observatory stated on the 2nd that the average temperature in May was 26.8 degrees Celsius, 0.5 degrees higher than normal. Starting from May 23rd, there were six consecutive "hot nights," setting the longest such record for May since records began.

Chief Executive John Lee Ka-chiu, leading a business delegation from Hong Kong and the mainland, began a visit to Kazakhstan on June 1st. Speaking to the media on the 2nd, Lee said the two days of inspections and meetings have given the delegation a deeper understanding of the latest developments in Central Asia in areas such as finance, trade, and innovation and technology. The visit to Kazakhstan has yielded multiple outcomes, including the expected signing of 43 memoranda and cooperation agreements covering trade, investment, financial services, technology, and education. Among them, in the first quarter of next year, a Hong Kong airline will launch direct flights to Almaty Airport in Kazakhstan.

Secretary for Environment and Ecology Tse Chin-wan led a delegation of Hong Kong Special Administrative Region Government officials in a meeting in Hong Kong on the 2nd with a Shenzhen Municipal Government delegation led by Vice Mayor Zhang Hua for the Hong Kong-Shenzhen Environmental Protection Task Force meeting. The meeting reviewed and approved the task force's 2025 work report and reported on the implementation status of the "Comprehensive Agreement on Deepening Hong Kong-Shenzhen Ecological and Environmental Protection Cooperation." Both sides also engaged in in-depth exchanges on topics including the preparation of five-year plans for ecological and environmental protection in Hong Kong and Shenzhen, the environmental quality of the Shenzhen-Hong Kong region during the APEC meetings, the joint construction of the Shenzhen-Hong Kong ecological corridor, and cross-border biodiversity co-protection, reporting on work progress and sharing experiences.

The Development Bureau and the Guangdong Provincial Department of Housing and Urban-Rural Development signed the "Guangdong-Hong Kong Engineering Construction Standardization Collaboration Agreement" on the 2nd to jointly promote a collaborative working mechanism for engineering construction standardization between the two places, coordinating and guiding the formulation of building standards for the Guangdong-Hong Kong-Macao Greater Bay Area.

The government proposes to amend the "Sweeteners in Food Regulation" (Cap. 132U) to more effectively safeguard public health and align with international standards. The Environment and Ecology Bureau and the Centre for Food Safety of the Food and Environmental Hygiene Department will first seek the views of the Legislative Council Panel on Food Safety and Environmental Hygiene on June 9th and plan to launch a public consultation within the year.

On June 2nd, Tseung Kwan O Methodist Primary School held a primary school science activity simulating rocket launch and recovery, allowing students to learn about making and testing recovery capsules for water rockets and experience the fascination of aerospace. Principal Lam Tak-yuk of Tseung Kwan O Methodist Primary School said in an interview that Karen Lui's space journey has made students more excited and motivated to learn, making them feel they also have a chance to try becoming astronauts. He also pointed out that the future "Heavenly Palace Dialogue" would be a great experience for students, and they might even participate in it.

A couple who had lived in Europe for many years gave birth to a younger child at their home in Hong Kong. The child is now two months old but still lacks a birth certificate, having exceeded the legal requirement for registration within 42 days. The Immigration Department stated it requires DNA test proof of the blood relationship, but the couple refused to provide it on "religious grounds," leaving the child without an identity to this day. Secretary for Labour and Welfare Chris Sun Yuk-han said the government has a comprehensive mechanism for handling children's welfare and will address the matter based on the principles of law, reason, and compassion as soon as possible, taking appropriate action when necessary.

General News

Film performing artist Wei Zongwan passed away due to illness in Shanghai on June 1st at the age of 89. Wei had appeared in films such as "One and Eight" and "The Army of San Mao," as well as TV dramas including the 1994 version of "Romance of the Three Kingdoms" and the 1998 version of "Water Margin."

According to reports, as of the local time on the 3rd, due to airstrikes, airport operations and all flight takeoffs and landings in Bahrain, the United Arab Emirates, and Kuwait have been suspended. The Kuwaiti military issued a statement on social media platforms in the early hours of the 3rd, stating that Kuwaiti air defense forces are intercepting incoming "hostile" missiles and drones. There are reports that a US military base in Kuwait was attacked.

Iran stated it retaliated against two rounds of US military aggression. On June 2nd local time, US artillery shells hit an Iranian oil tanker near the Strait of Hormuz, damaging its engine room. The Islamic Revolutionary Guard Corps of Iran issued a statement in the early hours of the 3rd, announcing that "in response to this aggression and violation of the rules of the Strait of Hormuz," the Revolutionary Guard attacked the vessel "Panaya," which belongs to the US and Israel, with missiles. The statement added, "In a subsequent new round of aggression, US forces attacked a Revolutionary Guard communications tower south of Qeshm Island, Iran. In response to this aggression, the Aerospace Force of the Revolutionary Guard launched missile and drone attacks on a US Air Force base in a country in the region and the headquarters of the US Fifth Fleet."

A dinner between Japanese and Philippine leaders turned into a karaoke session, with Japanese netizens commenting that Sanae Takaichi "appeared drunk with exaggerated expressions."

Entertainment

On June 2nd, the first round of interviews for the "2026 Miss Hong Kong Pageant" officially commenced at TV City, with numerous contestants attending. This year's lineup features notable highlights, including child star Bella Lam and short drama actress Ada, among other industry insiders signing up. Contestants of various styles appeared together, creating a vibrant and看点十足的 scene.

The 66-year-old Cherie Chung made a surprise appearance at a brand event in Causeway Bay on the 2nd, wearing a white gown with a sheer overlay, her charm undiminished. In an interview, she said movies were once her career; she grew up in films, and they gave her a lot. However, she currently has no intention of making a comeback, feeling that her life now is rich and happy, stating plainly, "I really like my life alone now." She revealed she now enjoys hiking and watching movies and is deeply moved to see so many excellent films and outstanding creators in Hong Kong.

Grandpa Ding stated that his relationship with Viva is "a thing of the past," and they currently have no contact, but meeting again wouldn't make them enemies. "If we meet on the street in the future, we will still say hello." He described Mark Ma as a polite junior and expressed no objection to meeting or collaborating with him in the future.