The Economist (November 23)
Across Asia a surprising and unwelcome phenomenon is arising: middle-class stagnation. Over the past three years, for example, 6 million Indonesians fell “into the ‘aspiring middle class,’” and are now “a stone’s throw away from poverty.” The nation’s middle-class population share dropped “to 17% from 22% before the pandemic.” This “middle-class malaise” is not restricted to Indonesia and may “shake up everything from profits to politics” throughout Asia.
Tags: 17%, 6 million, Asia, Aspiring, Indonesians, Malaise, Middle class, Pandemic, Politics, Population, Poverty, Profits, Stagnation, Surprising, Unwelcome
Foreign Policy (August 1)
The U.S. economic pivot to Asia began in 2011, but its tenor “has switched from economic offense to defense.” In the intervening years, “America’s positive economic agenda in Asia—opening markets, lowering barriers to trade, sealing agreements—bore virtually no fruit.” Largely driven by China, the U.S. instead raised tariffs, imposed sanctions, and “moved to de-risk and ‘friendshore’” supply chains.
Tags: 2011, Agenda, Agreements, Asia, China, De-risk, Defense, Economic offense, Economic pivot, Friendshore, Lowering barriers, Opening markets, Positive, Sanctions, Tariffs, Trade, U.S.
Wall Street Journal (April 8)
“Japan knows the Ukraine stakes.” In contrast, U.S. critics, especially Republican members of Congress are wavering on Ukraine aid, suggesting “the war in Europe is a distraction from more serious threats in Asia.” Tokyo realizes “a Russian victory may encourage Chinese imperialism.” Hopefully, during his visit next week, Prime Minister Kishida “can disabuse” Republicans of their errant notion. His government’s foreign policy “reflects the seriousness of the current geopolitical moment. Japan recognizes that the threat to the well-being of free nations is global.”
Tags: Aid, Asia, China, Congress, Critics, Europe, Free nations, Japan, Kishida, Republican, Russia, Stakes, Threats, U.S., Ukraine, War, Wavering, Well-being
Professional Pensions (March 27)
“Market turmoil, inflation shocks, high interest rates, and rolling geopolitical crises spurred many investors to stay on the sidelines last year” across all asset classes. “Yet investor appetite remains strong,” especially for real assets. “Globally, nearly two-thirds of investors expect to increase their allocation to real assets over the next two years, with investors in Asia most likely to add to their portfolios.”
Tags: Allocation, Appetite, Asia, Geopolitical crises, Inflation, Interest rates, Investors, Market turmoil, Real assets, Sidelines
CNN (March 18)
“All but one of the 100 cities with the world’s worst air pollution last year were in Asia… with the climate crisis playing a pivotal role in bad air quality that is risking the health of billions of people worldwide.” Of these, 83 cities “were in India and all exceeded the World Health Organization’s air quality guidelines” for PM2.5 “by more than 10 times.”
Tags: Air pollution, Asia, Cities, Climate crisis, Guidelines, Health, https://edition.cnn.com/2024/03/18/climate/air-pollution-report-2023-asia-climate-intl-hnk/index.html Worst, India, PM2.5, Quality, Risking, WHO
Time (March 1)
“Until the 1970s, women in the most prosperous Asian economies like South Korea, Japan, and China were having more than five children on average. Today, that trend is starkly different.” And not just in Asia. Globally, “fertility rates have decreased worldwide” for seven decades. “Even in the most advanced economies, the rate is now 1.6 children per couple, compared to the recommended rate of 2.1 for countries wanting to keep a steady population without any migration.”
Tags: 1970s, Advanced economies, Asia, Asia. Fertility rates, Children, China, Japan, Migration, Population, Prosperous, South Korea, Steady, Women
Financial Times (February 1)
“Mounting losses from banks in the US, Asia and Europe have rekindled concerns about weakness in the US commercial property market, a sector that has been under pressure from lower occupancy levels and higher interest rates.” This week New York Community Bancorp, Aozora Bank and Deutsche Bank each warned of related risks or recognized losses, which “mark the latest fallout from the… dual problems of fewer people working in offices since the pandemic and more expensive borrowing costs.”
Tags: Aozora Bank, Asia, Banks, Commercial property, Concerns, Deutsche Bank, Europe, Fallout, Interest rates, Losses, Occupancy, Offices, Pandemic, Pressure, Risks, U.S., Weakness
Financial Times (November 15)
“One of Asia’s sleepiest investment sectors has outperformed tech stocks.” Share prices have soared at Japanese banks and their earnings now “confirm the prescience of that rally…. Earnings at Japan’s five biggest banking groups rose 56 per cent to a record of about ¥2tn ($13bn).” Higher spreads and buybacks are part of the equation, “but the biggest driver of the rally has been rising hopes that the central bank may end its ultra-easy monetary policy soon.”
Tags: Asia, Banks, BOJ, Buybacks, Earnings, Investment, Japan, Outperformed, Rally, Share prices, Soared, Spreads, Tech stocks
Wall Street Journal (September 6)
Vladimir Putin’s meeting with North Korea’s Kim Jong Un “underscores the global nature of the threat to U.S. interests.” Indeed, the Japanese Prime Minister’s visit to Kyiv this spring was partly “because America’s allies in Asia understand that Ukraine isn’t a distant squabble. Russia has its own Pacific ambitions, including militarizing the Kuril Islands, some of which Japan also claims. A Russia that prevails in Ukraine will provoke elsewhere. Mr. Putin is also the junior partner to the neighborhood’s No. 1 threat: The Chinese Communist Party.”
Tags: Allies, Asia, CCP, Global nature, Japan, Kim, Kuril Islands, Kyiv, North Korea, Pacific ambitions, Prime minister, Provoke, Putin, Russia, Threat, U.S. interests, Ukraine
The Korea Economic Daily (June 15)
“Everything Asian policymakers were sure they knew about 2023 is going sideways.” When the year opened, “conventional wisdom” expected “Chinese growth would help the region make up for lost economic time.” Now the worry “is about deflation risks as factory-gate prices go negative” with consumer prices in China “on the verge of contraction.” Its exports are “cratering,” but China’s falling imports are “the bigger problem for Korea, and Asia more broadly.” In May, China’s imports fell by 4.5%, “dampening hopes that post-pandemic ‘revenge spending’ by 1.4 billion Chinese would propel Asian growth sharply higher.”
Tags: Asia, China, Consumer prices, Contraction, Cratering, Deflation risks, Exports, Factory-gate prices, Growth, Imports, Korea, Negative, Policymakers, Sideways
