Asia

When I attended the World Economic Forum’s annual gathering in Davos last month, Asia’s business executives were buzzing about the forces transforming the region. It’s a busy time: A new U.S. administration is proposing to revise the international trading system, a little-known Chinese startup is puncturing narratives about AI, and several Asian countries just reported 2024 as their warmest year on record. The 21st century may indeed belong to Asia, and the rewards could be enormous—but only for those who are prepared. Here are a few of the major themes, born from deep discussions with my Asian executive peers, that will drive the region in the coming year. Asia is aging–and shrinkingAsia reached a historic milestone: The region’s middle and upper classes, defined as annual househol...

Insurers are challenged by increasing life expectancy and shrinking birth rates, with those in developed countries tend to underestimate their life spans, whilst those in developing nations overestimate them, according to the Geneva Association’s recent study. More than two-thirds worry about healthcare access, retirement savings, and public safety nets, but many rate their financial readiness higher than it likely is. The study, Insurance and the Longevity Economy: Navigating protection in the era of 100-year lives, draws from a survey of 15,000 individuals across 12 countries in Asia, Europe, and the Americas. Insurance ranks amongst the top three institutions—alongside family and government—seen as crucial in preparing for longer life spans. However, engaging younger genera...

Markets across Asia were on edge on Wednesday after US President Donald Trump said he was planning to impose tariffs “in the neighborhood of 25%” on imports of autos, chips and pharmaceuticals. Asian nations, ranging from Japan and India to South Korea and Taiwan, export products across all three of those industries to the United States, and have already been stumbling under the pressure of increasing tariff threats from Trump. Concern over levies on major Asian exports to the US left investors jittery, pulling MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.12%. Japan’s Nikkei index also pared its early morning gains to end the day down by 0.3%. The muted performance of Asian stocks was a contrast to overnight moves of the S&P 500 and European shares, wi...

Embrace AI or be left behind, an expert said at the Asian Banking & Finance and Insurance Asia Summit today. Financial experts warned that fully banking on artificial intelligence (AI) won’t guarantee a positive return on investment but pinned that clean data, industry collaboration, and proper risk management are key to navigating volatility. During the Asian Banking & Finance and Insurance Asia Summit today, spokespersons from the industry discussed Thailand's challenging financial landscape. The event, which received over 220 attendees, was held at the Renaissance Bangkok Ratchaprasong Hotel. Warotai Kosolpisitkul, International Economic advisor, Fiscal Policy Office, Ministry of Finance, underscored the nation’s commitment to digital finance expansion. Highlighting...

Chinese president Xi Jinping’s high-profile meeting with the country’s tech leaders combined with the breakthrough development of DeepSeek is changing sentiment on the country’s beaten-down stocks, investment banks say. Bankers say Chinese tech shares now have the potential to tempt back long-term investors — a shift that would imply a significant change in mindset and money flows. “(Last year) many investors we spoke to still regarded China as a ‘trading market’ – fast money comes and goes to play the trading bounces, whereas global long-term capital remains unconvinced and little involved,” China equity analysts from Bank of America Securities said in a February 17 note. That view, however, could be shifting to “investable”, BofA analysts said. “Encouragingly, we think the f...

Asia, by 2040, is anticipated to be contributing 42% of global GDP, showing how the region is on the cusp of a new era and is on its way to expanding its global influence, according to McKinsey & Company.The global management consulting firm's analysis found that Asia could be home to 60% of the Fortune Global 500 companies and have 55% of the world’s total workforce. As Asian economies boost domestic investments, organisations are posed with the challenge of rethinking and reimagining their financial strategies to align with the economic shift. McKinsey recommends four approaches business leaders can look into to optimise capital allocation toward high-return prospects, where growth outpaces risk. Move beyond FDI reliance. Take a proactive approach to capital deployment. Rat...

Chinese president Xi Jinping held a rare meeting with some of the countries biggest technology leaders on Monday in a sign of Beijing’s growing urgency to prop up the sector amid rivalry with the US. Xi urged attendees to “show their talent” and be confident in the power of China’s model and market in a symposium attended by key names such as Huawei’s Ren Zhengfei, BYD’s Wang Chuanfu, DeepSeek’s Liang Wenfeng and even Alibaba’s once-pariah founder, Jack Ma. Meanwhile, the absence of a key Chinese tech leader from the meet — Baidu founder Robin Li — triggered a sharp fall in shares of the company that was once touted as China’s closest rival to OpenAI. Concern over Li’s absence erased $2.4 billion off Baidu’s market value in hours as the company’s stock plunged as much as 8.8% in ...

HSBC is intensifying its commitment to Asia by scaling back its investment banking operations in Western markets, a move that aligns with its long-term strategy of prioritising growth in the region. According to Reuters, the bank announced plans to wind down its mergers and acquisitions (M&A) and equity capital markets (ECM) divisions in Europe and North America, reinforcing its emphasis on serving Asian corporate clients. HSBC focuses on AsiaEarlier this month, HSBC chairman Mark Tucker (pictured) led a British business delegation to Beijing, where he spoke at the UK-China Financial Services Summit. Addressing Chinese Vice Premier He Lifeng, Tucker highlighted the importance of continued economic collaboration. The visit came amid HSBC’s ongoing efforts to strengthen ties wi...

The Chinese economy has started the year slowly, looking weak with deflationary pressure rising from persistently soft domestic demand. Official data showed factory-gate prices falling for a second straight year in 2024, while consumer prices only rose marginally. A combination of job insecurity, a prolonged housing downturn, debt and tariff threats from the incoming administration of US President-elect Donald Trump has hit demand, even as Beijing ramps up stimulus. The full-year consumer price index (CPI) rose 0.2%, data from the National Bureau of Statistics showed, in line with the previous year’s pace and well below the official target of around 3% for last year, suggesting inflation missed annual targets for the 13th straight year. In December, the CPI crept up 0.1% y...