Akito Tanaka shares his weekly reflections and recommendations
Malaysian Prime Minister Anwar Ibrahim delivers a speech during Nikkei's Future of Asia forum in Tokyo on June 10. (Photo by Sae Kamae)
Hello from Tokyo. Nikkei this week hosted one of its flagship events, the Future of Asia forum, with leaders such as Malaysian Prime Minister Anwar Ibrahim gathering in Japan's capital to discuss the region's geopolitical and economic outlook.
Now in its 31st year, the event comes at a time when Asia's future is increasingly unclear. The region faces the risk of fragmentation, driven by factors such as U.S. President Donald Trump's highly self-centered approach to global economics and geopolitics; the unstable relationship between Washington and Beijing; and concerns over energy shortages stemming from the Iran crisis. Anwar noted that trade, industrial policy and supply chains are now "viewed through the lens of rivalry rather than mutual benefit."
Maria Theresa Lazaro, the Philippines' secretary of foreign affairs, emphasized that in the modern era, "economic security is national security." Anwar concurred that current trends "risk dividing the region into competing spheres."
Uncertainty is also growing in Asia's equity markets, which have been hitting record highs amid the AI boom. Volatility is increasing in the Japanese and South Korean stock markets. In an exclusive interview with Nikkei Asia during his visit for the conference, South Korea's SK Group Chairman Chey Tae-won said that "the stock market always overshoots, and when it falls, it falls sharply," adding that markets are currently in a "very unstable state." Rising expectations of higher U.S. interest rates and persistently elevated oil prices are also weighing on Asian currencies.
Despite these uncertainties, there is another "future of Asia" that offers plenty to look forward to. The FIFA World Cup, co-hosted by the U.S., Mexico and Canada, has kicked off. A record nine teams from the Asian Football Confederation are participating. Time differences will likely mean sleepless nights for football fans across many Asian countries, but the excitement on the pitch should more than make up for it.
1. Instead of just promoting its brand, China's Lenovo has seized the chance as the first "official global technology partner" of FIFA to show off its AI capabilities at this year's World Cup. The hope is that those attending or watching the tournament can be persuaded that the company's technology has improved the experience -- and might be worth paying for.
2. Japan is looking to take a bigger role in the construction of subsea cables, the backbone of global telecommunications. The AI boom is fueling demand for more cable capacity, pushing up investment and attracting new players to the segment, including Google, Microsoft and Amazon. As one source told Nikkei Asia, "The entire market is under pressure to move faster."
3. At least 1,000 people have lost a total of tens of millions of dollars and appear to have little chance of recovering their funds after two Cambodian payment apps, Huione Pay and H-Pay, collapsed. Their operations highlight the murkiness of Cambodia's financial sector, where very publicly visible companies offered services for which they were not licensed, including taking deposits and offering loans.
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