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Economy

Global development must benefit investors too, including China: UNDP head

'Aid is the past,' says Alexander De Croo, as US and other governments look inward Alexander De Croo, former prime minister of Belgium, now serving as administrator of the United Nations Development Programme (UNDP), argues that development aid should be viewed as an investment that creates markets. (Photo by Shintaro Ino) TOKYO -- The head of the United Nations' top agency for international development says emerging economies need capital, not charity, while the countries providing the funds are entitled to pursue their own national interests -- including China with its Belt and Road Initiative.

August 1, 2026

Economy

Editor’s Choice: For Asia in particular, the dot-com bubble and AI boom are different

Akito Tanaka shares his weekly reflections and recommendations Buying on the dip supported shares in Japan and South Korea on July 30 after the main Tokyo and Seoul indexes fell sharply over the past few days. © Reuters Hello from Tokyo. It was two months ago when I wrote a newsletter about Asia's "$1 trillion club." Driven by strong capital spending from major U.S. tech companies that are betting AI will remain a long-term growth story, share prices of Taiwan's TSMC as well as South Korea's Samsung Electronics and SK Hynix surged. All three companies surpassed the $1 trillion market capitalization mark, setting a milestone in Asian corporate history. SK Hynix, which reported earnings on Wednesday, posted a more than thirteenfold increase in net profit for the April-June quarter from a year earlier. Its operating margin reached 76%, a remarkable level for the capital-intensive industry. Revenue, operating profit and net profit all hit record quarterly highs, making it difficult to question the company's financial performance. Yet, SK Hynix's share price slipped following the earnings announcement. The reason? Its operating profit fell short of the average analyst forecast, despite astonishing growth.

July 31, 2026

Economy

Tesla denies sale of China business amid SpaceX merger buzz

Elon Musk calls report 'absurdly fake news' as his companies navigate geopolitics Employees work at the Tesla Gigafactory in Shanghai during a government-organized media trip on April 14. © Reuters HONG KONG -- U.S. automaker Tesla on Friday denied that it is exploring a sale of its Chinese business, as questions mount over its future in the world's largest car market amid speculation of a possible merger with SpaceX.

July 31, 2026

Economy

Taiwan GDP grows nearly 13% in Q2, supercharged by AI and US ties

Lai administration faces challenge of addressing economic imbalances Taiwan's economy is booming thanks to the global AI buildout, although the administration in Taipei aims to spread the benefits. © Reuters TAIPEI -- Taiwan's economy grew 12.92% on the year in the second quarter, Taipei's statistics agency said Friday, driven by the AI boom and thriving trade and investment ties with the U.S.

July 31, 2026

Economy

NATO’s Indo-Pacific era is over

No mention of China in summit declarations exposes limits of bloc's Asia commitment NATO leaders stand for a family photo at a leaders' summit in Ankara, Turkey, on July 8. © Reuters Sebastian Contin Trillo-Figueroa is an Asia-based geopolitics strategist specializing in the intersection of European, Asian and U.S. relations.

July 31, 2026

Economy

Itochu to invest $1.9bn in Tokyo Century’s aircraft leasing unit

Japanese trading house taps US's Aviation Capital Group as global jet shortage persists The Airbus A320neo is widely used in the aircraft leasing business. (Airbus) TOKYO -- Japanese trading house Itochu plans to invest about 300 billion yen ($1.9 billion) to acquire a 50% stake in Aviation Capital Group (ACG), a leading U.S. aircraft lessor and a subsidiary of Japanese leasing company Tokyo Century, Nikkei has learned.

July 31, 2026

Economy

Takaichi’s plan to cut sales tax on food threatens Japan’s future

Move will shift burden of today's costs to tomorrow's generations Japanese Prime Minister Sanae Takaichi on July 30 announces plans to temporarily lower the nation's consumption tax on food. (Photo by Ken Suzuki) An announcement on Thursday showed that the government of Japanese Prime Minister Sanae Takaichi seems incapable of managing state affairs with a broad sense of perspective. The plan to lower the consumption tax on food will only erode fiscal discipline, reduce funding for the nation's social security system and increase reliance on deficit-covering government bonds.

July 31, 2026

Economy

DeepSeek releases beta version of V4 models as AI price war heats up

Company touts more capable offerings and says it will implement peak-hour pricing plan DeepSeek’s pricing plans for its AI models are far cheaper than those of U.S. rivals. © Getty Images HONG KONG -- DeepSeek, China's artificial intelligence darling that rattled Silicon Valley last year, made the official beta version of its latest V4 Flash model publicly available on Friday, a move set to intensify a global price war in cutting-edge AI models.

July 31, 2026

Economy

Japan’s Kioxia forecasts 31-fold profit surge as tech shares swing

Chip supplier's July-September outlook falls short of analyst estimates Demand for NAND flash memory, the core product of Kioxia Holdings, is on the rise as U.S. tech companies expand data center capacity. (Photo by Shintaro Ino) TOKYO -- Kioxia Holdings on Friday forecast a 31-fold increase in quarterly net profit, supported by strong demand for artificial intelligence data centers, even as its share price has tumbled on concerns that big tech firms are overinvesting in the infrastructure.

July 31, 2026

Economy

BOJ chief flags upside inflation risks, faster hikes possible

Policy rate unchanged, Japanese central bank to monitor yen movement, AI and Iran war Bank of Japan Gov. Kazuo Ueda on Friday said that if financial conditions are judged to be overly accommodative, BOJ could "accelerate the pace of rate hikes." (Photo by Rie Ishi) TOKYO -- Bank of Japan Gov. Kazuo Ueda on Friday signaled the pace of rate hikes could accelerate, while warning of "meaningful upside risks" to inflation due to rising wages and prices, as well as elevated oil prices and a weak yen.

July 31, 2026

Economy

Nikkei to lower Advantest’s weight in Nikkei 225

Index coefficient to be cut in October after stock tops 10% limit Nikkei to lower Advantest's weight in Nikkei 225 from October as stock's index share exceeds 10% cap rule. TOKYO -- Nikkei will reduce the weighting of Advantest in the Nikkei 225 from Oct. 1, applying a cap intended to prevent any single constituent from becoming overly dominant. Based on the shares' July 31 closing price, the reference date for this autumn's periodic review, Advantest accounted for 12.2% of the index. This was above the 10% level that triggers the cap rule introduced in 2022. The Nikkei 225 is calculated using constituent share prices, multiplied by a price adjustment factor, which reflects past capital changes. Nikkei currently applies a factor of 7.2 and will reduce it to 6.4, starting in October. Further adjustments or removal of the cap will be decided in connection with the semiannual reviews following next spring. The capping rule was first applied in the autumn of 2024 to Fast Retailing. It was applied again in the spring of 2025. Advantest was also subject to the rule during the index's spring review this year.

July 31, 2026

Economy

Japan yen-buying intervention Thursday may have totaled up to $44bn

The flags of Japan and the United States are displayed in a trading room in Tokyo on June 23. © Kyodo TOKYO -- Preliminary money market data released by the Bank of Japan on Friday suggests around 6 trillion to 7 trillion yen ($37.5 billion to $44 billion) worth of yen-buying intervention took place on Thursday, underscoring the currency's 3% jump against the greenback in early New York trading the same day.

July 31, 2026