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July
Japan factory output rises 2% in June as demand buoys manufacturers
Written by Nur Yasmin
Japanese factory output improved in June for the first time in two months, government data showed on Monday, highlighting growing confidence among manufacturers buoyed by strong demand.
Many countries, including Japan, are relying on domestic consumption to underpin growth while the risk of global recession persists.
Output rose 2.0% in June from a month prior on a seasonally adjusted basis, missing the 2.4% median market forecast. That followed a revised 2.2% decline in May.
"Production is likely to continue to pick up on the back of resilient domestic demand, particularly for private consumption," said Taro Saito, executive research fellow at NLI Research Institute.
"However, the pace of recovery is likely to be moderate due to continued sluggish export growth caused by slowdown in overseas economies."
The figures tally with improvement in sentiment among big manufacturers in the second quarter as raw material costs peaked and the end of pandemic curbs lifted consumption, showed the Bank of Japan's "tankan" survey released on July 3.
Still, concern about weakening overseas made manufacturers more muted in the Reuters Tankan poll published on July 19.
Production in the auto-related sector, which comprises a large chunk of corporate Japan, rose 6.1%. Sales both at home and abroad were strong, a Ministry of Economy, Trade and Industry (METI) official told a media briefing.
Output of trucks and parts, including gear systems, also contributed to the upward swing, the official said.
Toyota Motor (7203.T), Honda Motor (7267.T) and Nissan Motor (7201.T) reported increased global production in January-June as semiconductor supply eased.
Electronic components and devices output rose 6.8% as shipments of capacitors used in smartphones increased, the METI official said.
METI maintained its assessment of industrial output, saying "production is slowly picking up".
Manufacturers surveyed by METI expected output to fall 0.2% in July and increase 1.1% in August, the data also showed.
"We'll continue to monitor the effects of the shortage of parts and materials and the impact of rising prices" in coming months, the METI official said.
Separate data showed retail sales rose 5.9% in June from a year earlier, in line with economist forecasts.
Compared with the previous month, retail sales contracted 0.4%, following a 1.4% rise in May, the data showed. (Reuters)
July
Russia places third ICC official on its wanted list
Written by Nur Yasmin
Russia has placed a third official at the International Criminal Court on its wanted list after the ICC accused President Vladimir Putin of war crimes in Ukraine, the state news agency TASS reported on Thursday.
Judge Tomoko Akane was listed as "wanted under an article of the Criminal Code of the Russian Federation" in the online database of Russia's interior ministry, but with no mention of her alleged crime.
The ICC issued arrest warrants in March for Putin and his children's commissioner, Maria Lvova-Belova, accusing them of illegally deporting hundreds of children from Ukraine - a war crime.
Russia acknowledges having transferred thousands of children out of Ukraine, but says this has been done exclusively to protect orphans and children abandoned in the war zone.
Russia responded to the ICC warrant three days later by opening criminal cases against ICC Prosecutor Karim Khan and judges who ordered Putin's arrest, including Akane and the Italian Rosario Salvatore Aitala.
Khan and Aitala were placed on Russia's wanted list in May and June respectively.
Akane, a Japanese national, has served as one of 18 judges on the ICC since 2018, according to the court's website. Prior to that, she was Japan's ambassador for international judicial cooperation, and also served as a public prosecutor.
The ICC said it stood by a statement issued in May, after Khan was placed on the list, where it said it was "profoundly concerned about unwarranted and unjustified coercive measures reportedly taken against ICC officials".
It said it would remain "undeterred in the conduct of its lawful mandate to ensure accountability for the gravest crimes of concern to the international community as a whole". (Reuters)
July
France's Macron warns against new 'imperialism' in the Pacific
Written by Nur Yasmin
French President Emmanuel Macron warned against "new imperialism" in the Pacific during a landmark visit to the region, denouncing predatory behaviour by big powers in a region where China is extending trade and security ties.
France, which has island territories spanning the Indo-Pacific including French Polynesia, has boosted defence ties with India and other countries in the region as part of a move to counter Chinese influence.
In a speech in Vanuatu, Macron, the first French president to have set foot on the Pacific islands nation since war leader Charles de Gaulle, said France would work "shoulder to shoulder" with states in the region to preserve their independence.
"There is in the Indo-Pacific, especially in Oceania, new imperialism appearing and a power logic which is threatening the sovereignty of many states, the smallest and often the most fragile ones," Macron said, without naming any country.
"The modern world is shaking up the Indo-Pacific's sovereignty and independence. First, because of the predation of big powers. Foreign ships fish illegally here. In the region, many loans with Leonine conditions strangle up development."
Pacific Islands nations are being courted by China, a major infrastructure lender which struck a security pact with Solomon Islands last year, and the United States, which is re-opening embassies closed since the Cold War.
MACRON FOLLOWS AUSTIN
China has been a major infrastructure lender to Pacific Islands nations including Vanuatu over the past decade. Vanuatu's largest creditor is China's EXIM bank, accounting for a third of debt, according to the International Monetary Fund (IMF).
Washington has stepped up U.S. Coast Guard patrols and surveillance for illegal fishing in the Pacific islands, after concern at China's naval ambitions.
After Vanuatu, Macron is due to arrive in Papua New Guinea on Thursday evening, hot on the heels of U.S. Secretary of Defense Lloyd Austin, who was there on Thursday.
In May, the U.S. and Papua New Guinea (PNG) signed a defence agreement that sets a framework for Washington to refurbish PNG ports and airports for military and civilian use.
The United States and its allies are seeking to deter Pacific Islands nations from establishing security ties with China, a rising concern amid tension over Taiwan.
Macron's advisers say France can be an "alternative" and help island nations diversify their partnerships without becoming too reliant on one single country. (Reuters)
July
China offers to hold joint military drills with Philippines
Written by Nur Yasmin
China has offered to hold joint military exercises with the Philippines, local media reported on Thursday, quoting Manila's military chief.
Armed Forces of the Philippines Chief Romeo Brawner will study the offer which was presented to him by China's ambassador to Manila, CNN Philippines and state-run PTV reported.
"They said they submitted some white papers, we have to study," Brawner said in a video posted by CNN Philippines on messaging platform X, formerly known as Twitter.
There was no immediate comment from Brawner, but military spokesperson Medel Aguilar said he did see the video of Brawner's interview and reiterated the conversation he had with the Chinese diplomat was "informal."
"I am not aware if we are already furnished with the white papers," Aquilar told Reuters. Brawner spoke to reporters on the sidelines of an event hosted by China's ambassador in Manila to mark the anniversary of the People's Liberation Army (PLA), Aquilar said.
China's embassy in Manila did not immediately respond to a request for comment.
"We try to establish relations with armies, with armed forces around the world. This is one way for us to prevent war," Brawner said.
Beijing's offer to carry out joint military drills with the Philippines comes as time of heightened tensions between the countries over what Manila describes as China's "aggressive" activities in the South China Sea.
China has longstanding territorial disputes in the South China Sea with several countries in the region, including the Philippines.
There were no other details given on the proposed joint military drills, but Brawner said they would not be conducted in the South China Sea.
A former army chief, Brawner this month took over as armed forces head, succeeding Andres Centino who was appointed by Philippine President Ferdinand Marcos Jr as his adviser on the South China Sea.
Marcos, who has sought closer ties with Washington, reiterated in his annual address on Monday, that he will protect his country's sovereign rights and territorial integrity.
China does not accept the Arbitral Tribunal's ruling in 2016 which concluded Beijing's claim to almost the entire sea was invalid. (Reuters)
July
US not seeking permanent base in Papua New Guinea, defense secretary says
Written by Nur Yasmin
U.S. Secretary of Defense Lloyd Austin said on Thursday during a visit to Papua New Guinea that the United States was not seeking a permanent base in the Pacific country but would boost the nation's capability under a new defence agreement.
Papua New Guinea (PNG) and the United States signed a defence cooperation agreement in May that sets a framework for the U.S. to refurbish PNG ports and airports for military and civilian use over 15 years. read more
Austin met PNG Prime Minister James Marape on the first visit by a U.S. defence chief, to discuss deepening ties and announce a U.S. Coast Guard vessel would arrive in August under a separate maritime law enforcement deal.
French President Emmanuel Macron will arrive in PNG, a resource-rich but largely undeveloped nation north of Australia, on Thursday evening, the first visit by a French leader. Macron warned in a speech on Thursday in neighbouring Vanuatu of a "new imperialism" appearing in the Pacific region, testing the maritime and financial sovereignty of small nations. read more
"Foreign ships fish illegally here. In the region, many loans with Leonine conditions strangle up development," he said.
The United States and its allies are seeking to deter Pacific Islands nations from establishing security ties with China, a major infrastructure lender to the region, a rising concern amid tension over Taiwan, and after Beijing signed a security pact with Solomon Islands.
The U.S. Coast Guard is boosting its presence in the region under bilateral agreements to patrol the vast exclusive economic zones of island states, although the Solomon Islands and Vanuatu, with closer ties to Beijing, have blocked U.S. Coast Guard port calls.
Marape said PNG's second-largest city of Lae, a major cargo port, has been designated as a U.S. base for disaster management.
"I just want to be clear, we are not seeking a permanent base in PNG," Austin told a press conference in the capital, Port Moresby.
The text of the defence agreement shows that it allows the staging of U.S. forces and equipment in PNG.
Austin said the two countries would modernise PNG's defence force and boost interoperability.
"Our goal is to make sure we strengthen PNG's ability to defend itself and protect its interest," he said.
PNG's parliament has yet to ratify the defence deal, which has been questioned by some opposition politicians concerned about upsetting major trading partner China. Marape said his government prioritised diplomacy.
"In the Pacific we are not about war, we are about peace, tolerance and of course promoting our values of democracy, Christianity ... The USA has always been showing that character also in their global footprint," he said.
"USA do not need PNG's ground to be a launching pad," he told reporters in response to questions.
"They have bases in Philippines, in Korea, elsewhere, much closer to China," he added. (Reuters)
July
Blinken says door open for New Zealand to engage on AUKUS
Written by Nur Yasmin
U.S. Secretary of State Antony Blinken said on Thursday the door was open for New Zealand to engage with the AUKUS weapons development and procurement project between the United States, Britain and Australia.
The multi-stage AUKUS project announced in March is planned to culminate in the late 2030s and early 2040s with British and Australian production and operation of a new submarine class - SSN-AUKUS - and include "cutting edge" U.S. technologies.
"The door's very much open for New Zealand and other partners to engage as they see appropriate going forward," Blinken told a news conference in Wellington.
"We've long worked together on the most important national security issues. And so as we further develop AUKUS, as I said, the door is open to engagement."
Blinken is New Zealand for just over a day as part of a three-country visit to the Pacific.
He met with New Zealand Prime Minister Chris Hipkins and Foreign Minister Nanaia Mahuta. He will travel to Australia later Thursday where the largest Australia-U.S. military exercise is due to begin.
New Zealand has said that it is open to discussions on a second phase of AUKUS focusing on military technology, but Mahuta on Thursday reiterated it was “not prepared to compromise or change our nuclear-free position” and that it continued to support a nuclear-free Pacific.
She said her discussions with Blinken were warm and personal and they had covered the international rules-based order, the increasingly contested global environment including in the Pacific, and highlighted the two countries' commitment to democracy and human rights.
New Zealand and the U.S. describe themselves as close strategic partners, although their alliance was suspended in the 1980s when New Zealand barred visits from U.S. nuclear-powered or armed warships.
Their relationship has become increasingly close in the past couple of years due to mutual concerns about China’s presence in the Pacific, particularly Beijing's growing defence and policing ties with the Solomon Islands and its potential destabilizing effect in the region.
Mahuta said that while New Zealand respected the Solomon Islands' independence, it also supported regional agreements that ask Pacific countries to come together when making decisions that could impact the region. (Reuters)
July
North Korea to welcome China and Russia with military display after pandemic isolation
Written by Nur Yasmin
After years of pandemic isolation, North Korea has invited its friends back this week, hosting senior Chinese and Russian delegations for 70th anniversary commemorations of the Korean War and the struggle against the United States and its allies.
The visiting dignitaries, which include Russian Defence Minister Sergei Shoigu and Chinese Communist Party Politburo member Li Hongzhong, are expected to be presented with one of North Korea's signature events: a massive military parade showcasing its latest weaponry.
Analysts say the spectacle will likely include the North's nuclear-tipped missiles banned by the United Nations Security Council, where Russia and China are permanent members.
The visits are the first known foreign delegations to visit North Korea since the COVID-19 pandemic began, and come as Pyongyang has looked to deepen its ties with Beijing and Moscow, finding common ground in their rivalries with Washington and the West.
Thursday's holiday, in which North Korea celebrates what it sees as a victory over U.S.-led allied forces in the 1950-1953 Korean War, provides a chance for Pyongyang to highlight the Cold War days when North Korean troops fought with Chinese and Russian support.
North Korea is still technically at war with the U.S.-led alliance after fighting ended in an armistice, rather than a formal peace treaty.
"North Korea inviting delegations from both countries seems to be a case of history rhyming, whereby Pyongyang is gearing up to stand up against the West, but perceives the need to maintain relatively balanced ties with both China and Russia," said Anthony Rinna, a specialist in Korea-Russia relations at Sino-NK, a website that analyses the region.
Only time will tell if the visits signal a broader easing in North Korea's bans on international travel, which could in theory provide an opening for U.S. officials to negotiate the release of U.S. soldier Travis King, who crossed into North Korea last week, Rinna said.
However, it seems unlikely that Pyongyang will seek to engage with Washington any time soon, and may consider itself to be in a full-scale New Cold War with the United States, he added.
MILITARY DISPLAYS
Images from Russia's defence ministry and North Korean media showed Shoigu being greeted by North Korean defence minister Kang Sun Nam and Russian ambassador Alexander Matsegora at the airport, and rows of North Korean and Russia troops.
The United States has accused North Korea of providing weapons to Russia during the war in Ukraine, including an arms delivery of infantry rockets and missiles to the Kremlin-backed Wagner mercenary group in November 2022.
Pyongyang and Moscow have denied those claims, but Kim has vowed to bolster strategic cooperation between the nations.
The military parade in Pyongyang is likely to include as many as 15,000 personnel, and possibly feature new designs of nuclear-capable weapons, said Yang Moo-jin, a professor at the University of North Korean Studies in Seoul.
Commercial satellite imagery over recent weeks have shown participants practicing, including in downtown Kim Il Sung Square where the event will take place, with large formations showing the number "70" and other slogans, said Dave Schmerler, a researcher at the James Martin Center for Nonproliferation Studies (CNS).
At a training ground outside Pyongyang, military units appeared to be practicing marching around the square track with vehicles behind them, Schmerler added, citing imagery provided to Reuters by U.S.-based firm Umbra, which used radar imaging satellites to peer through cloud cover.
'SHUTTLE DIPLOMACY'
Leader Kim Jong Un kicked off commemorations this week with visits to a cemetery for Chinese soldiers who fought in the war, known as the Fatherland Liberation War, state media KCNA reported on Wednesday. The only defence treaty China and North Korea have is with each other.
Kim also visited the Fatherland Liberation War Martyrs Cemetery on Monday, KCNA reported, as he praised the soldiers for "inflicting defeat" on U.S. imperialism.
Amid international sanctions over North Korea's missile and nuclear programmes - which both Moscow and Beijing voted to impose - China has become by far North Korea's largest trading partner. China's exports to its secretive neighbour in June were eight times higher than a year before.
Beijing asserted on Monday that it "strictly" implements U.N. sanctions on North Korea.
Russia and China have rebuffed recent attempts by the United States and some European countries to impose new sanctions on North Korea.
They have instead pushed for existing measures to be eased for humanitarian purposes and to entice Pyongyang back to denuclearisation talks, which broke down in 2019.
Yang said the delegations could signal that long-stalled diplomatic visits could resume.
"If North Korea also sends a high-level delegation to China for the upcoming Hangzhou Asian Games, it means the resumption of high-level 'shuttle diplomacy' between North Korea and China since the COVID-19 pandemic," he said. (Reuters)
July
Japan's population falls while foreign residents rise to record
Written by Nur Yasmin
The number of Japanese people has decreased at the fastest pace ever while the number of foreign residents has risen to a record of nearly 3 million, government data showed on Wednesday.
The data showed that Japanese society is aging across the country and suggests that foreign nationals are playing an ever bigger role in making up for the shrinking population.
The number of Japanese nationals fell for a 14th year, by about 800,000 people, to 122.42 million, according to resident registration data as of Jan. 1, 2023, released by the Ministry of Internal Affairs and Communications.
For the first time, the number of Japanese residents fell in all 47 prefectures, the data showed.
The number of foreign nationals living in Japan was a record 2.99 million, a 10.7% increase from the previous year, the biggest year-on-year increase since the ministry began tracking the data a decade ago.
As of Jan. 1, 2020, just before the COVID-19 pandemic spread around the world, there were 2.87 million foreigners living in Japan.
Japan's total population fell to 125.42 million, a decrease of about 511,000, the new data showed.
The population has fallen every year since peaking in 2008 due to a low birth rate, reaching a record low last year.
The government aims to address the problem by various means, including employing more women, the top government spokesperson said.
"To secure a stable workforce, the government will promote labour market reforms to maximise the employment of women, the elderly and others," Chief Cabinet Secretary Hirokazu Matsuno said.
Prime Minister Fumio Kishida has made reversing the sliding birth rate a top priority and his government, despite high levels of debt, plans to earmark 3.5 trillion yen ($25 billion) a year for child care and other measures to support parents.
A group of Tokyo-based public think tanks said last year that Japan needed about four times as many foreign workers by 2040 to achieve the government's economic growth forecasts. (Reuters)
July
Malaysia PM raises prospect of ASEAN engaging informally with Myanmar
Written by Nur Yasmin
Malaysia, one of the biggest critics of violence in military-ruled Myanmar, on Wednesday raised the possibility of ASEAN allowing member countries to engage informally with the junta "without sacrificing the issue of human rights".
Malaysian Prime Minister Anwar Ibrahim said he discussed the matter with Philippines President Ferdinand Marcos Jr who is in Kuala Lumpur for bilateral meetings.
Malaysia and the Association of Southeast Asian Nations (ASEAN) have previously rejected any engagement with the junta, though Thailand this year hosted an informal meeting with Myanmar citing a need to maintain dialogue.
"We did touch on Myanmar to strengthen the five-point consensus of ASEAN but also give some flexibility...for neighbouring countries to engage on an informal basis without sacrificing the issue of human rights, and the treatment of minorities, particularly the Rohingya," Anwar said in a joint press conference with Marcos.
The Philippines' president did not comment on Myanmar.
ASEAN, which includes Myanmar among its 10 members, has pushed, without success, for the implementation of a five-point peace plan agreed with the junta shortly after a coup in early 2021.
Malaysia has been a vocal critic of the junta. Earlier this month, it urged ASEAN to strongly condemn the junta's actions, including violence. (Reuters)
July
EU probes border agency's rescue role after migrant shipwreck killed hundreds
Written by Nur Yasmin
The EU rights watchdog on Wednesday announced a probe into Europe's deadliest shipwreck in years and whether the bloc's Frontex border agency fulfilled its rescue duties when the boat sank off Greece last month killing hundreds of migrants.
European Ombudsman Emily O'Reilly said her office would review Frontex's internal rules, cooperation with Greek authorities and reports drawn up after the disaster, saying the deaths required close scrutiny.
"My office will focus on the role of Frontex as we try to piece together the events that led to the capsizing of the boat and the deaths of at least 500 people," she said in announcing the inquiry into the sinking of the Adriana boat on June 14.
"Migration to Europe will continue and it is up to the EU to ensure that it acts in a way that maintains fundamental rights and does not lose sight of the human suffering."
Survivors recounted the Greek coastguard's doomed attempt to tow the overloaded trawler. Islamabad said the boat was carrying over 700 people, including at least 350 Pakistanis. The Greek coastguard rescued 104 people but hundreds drowned in one of Europe's deadliest shipwrecks in recent years.
Frontex said it would cooperate with the probe. "Frontex sees the rescue of lives at sea as one of its essential roles and provides all the necessary support to national authorities when needed," it said in a statement.
The 27-nation EU has turned increasingly restrictive on irregular immigration from the Middle East and Africa since more than a million people - mostly fleeing the war in Syria - arrived across the Mediterranean in 2015.
Frontex received more money and powers as the bloc pushed to cut the sudden increase in sea arrivals of people fleeing wars and poverty in less well-off parts of the world. Climate change is also seen as increasingly driving global migration.
Irregular immigration all but stopped amid the COVID pandemic. Fewer than 160,000 people made it across the sea last year, according to U.N. data. More than 2,400 died along the way.
The issue remains highly sensitive across the bloc, especially ahead of a pan-EU election next June, with governments in countries including Italy, the Netherlands and Poland loudly calling for policies to keep people away.
O'Reilly also said she would look into a recent EU deal with Tunisia to stem migration to Europe. (Reuters)