Today, Japan's July CPI data was released, and the data is relatively mild, showing an overall downward trend in inflation, which somewhat alleviates the pressure on Shih Pao-Wei. However, the alleviation of pressure may only be temporary. Given the achievement of the trade agreement between China and the U.S., the future direction of Japan's inflation will be a key focus. Currently known trade agreements, if they can alleviate imported inflation and ensure stable supply of raw materials, could have a suppressive effect on inflation. On the contrary, if the agreement leads to an increase in demand for the yen, combined with an expansion of government fiscal investment, it could instead drive a rebound in Japan's inflation. Going forward, attention should be paid to Japan's short-term inflation data for 3 months and long-term data for 12 months, as the transmission of trade effects on inflation has a certain lag. However, the increase in Japan's foreign investment can be seen in the statistics below: "Foreign bonds purchased by Japan this week," where the purchase volume has significantly increased, and the largest proportion of these purchases is undoubtedly U.S. Treasuries. This also makes sense, as Japan is the largest buyer and investor of U.S. Treasuries. Now, Japan's compromise essentially represents that South Korea is about to be "isolated and helpless," making it easier and simpler to reach an agreement for Trump!