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Asian equities rose Wednesday following a Wall Street rally as traders cheered forecast-beating US consumer confidence data and a drop in bond yields, with eyes now on a key sale of Japanese debt.New York investors returned to their desks after a long weekend break in a good mood after Donald Trump delayed until July the 50 percent tariffs he announced out of the blue on Friday, sparking a market rout.The US president’s announcement Sunday soothed worries about a fresh flare-up in his trade war that has rattled global sentiment, fanned uncertainty and led some to question their confidence in the world’s biggest economy.Buying was also boosted by Trump’s post on social media saying progress with Brussels was being made.”I have just been informed that the E.U. has called to quickly establish meeting dates,” he said on his Truth Social platform.”This is a positive event, and I hope that they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America.”Markets also cheered data showing a bigger-than-expected jump in US consumer confidence thanks to a slight easing of trade tensions, particularly with China.The lift in the Conference Board’s index was the first improvement after five months of decline and dragged it up from lows last seen at the onset of the Covid-19 pandemic. However, the report did warn that tariffs remained a key concern.Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Manila and Jakarta all rose. Wellington was in the red even after New Zealand’s central bank cut interest rates for the sixth meeting in a row.Tokyo was also on the front foot as investors eye the crucial sale of Japanese 40-year government bonds, after an auction of 20-year notes this month saw the worst take-up in more than a decade.The cost of government debt has surged around the world in recent weeks — hitting record highs last week in Japan — amid worries about rising spending as leaders try to support their economies and after Trump’s April 2 tariff blitz.However, yields tumbled Tuesday after Japan’s Ministry of Finance sent a questionnaire to market players regarding issuance, fuelling talk that it was considering slowing its sales down, meaning there would be less supply.Masahiko Loo, senior fixed income strategist at State Street Global Advisors, said the recent panic over the Japanese government bond (JGB) market may have been overdone.”We maintain our long-standing view that the challenges in the JGB market are technical rather than structural. These issues are largely addressable through adjustments in issuance volume or composition,” he wrote in a commentary.”We believe the concern on loss of control over the super-long end is overblown. Around 90 percent of JGBs are domestically held, and the ‘don’t fight the BOJ/MOF’ mantra remains a powerful anchor,” he added, referring to the Bank of Japan and Ministry of Finance.”Any perceived supply-demand imbalance is more a matter of timing mismatches, which is a technical dislocation rather than a fundamental flaw.”We expect these imbalances to be resolved as early as the third quarter of 2025. The MOF potential reduction headline reinforces our view.”The drop in Japanese yields sent the yen lower Tuesday, and it held those losses in early trade Wednesday, sitting around 144.30 per dollar.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 37.918.86 (break) Hong Kong – Hang Seng Index: UP 0.2 percent at 23,421.96Shanghai – Composite: UP 0.2 percent at 3,346.13Euro/dollar: DOWN at $1.1323 from $1.1329 on TuesdayPound/dollar: DOWN at $1.3502 from $1.3504Dollar/yen: DOWN at 144.26 yen from 144.34 yenEuro/pound: DOWN at 83.86 pence from 83.88 penceWest Texas Intermediate: UP 0.8 percent at $61.36 per barrelBrent North Sea Crude: UP 0.7 percent at $64.56 per barrelNew York – Dow: UP 1.8 percent at 42,343.65 (close)London – FTSE 100: UP 0.7 percent at 8,778.05 (close)

Emmanuel Macron will seek to deepen trade and defence ties on a visit to Indonesia Wednesday, the second leg of a three-country Southeast Asia tour promoting France as a balancing power between the US and China.The French president will be received by Indonesian counterpart Prabowo Subianto before meeting investors and students in Southeast Asia’s largest economy and attending a state dinner. “I’m really excited to meet again with my brother President Prabowo, a good friend of mine,” he said after arriving Tuesday evening in the capital Jakarta, where he was greeted by the foreign and defence ministers. “The relationship with your country is a very strategic and friendly one,” Macron said.On Thursday, he will travel to Yogyakarta on Indonesia’s main island Java where he will visit the world’s largest Buddhist temple before heading to Singapore to conclude his six-day tour. In the face of Donald Trump’s tariffs and the United States’ economic confrontation with China, Macron will seek to turn his “third way” position into contracts for French companies, particularly in defence, energy and critical minerals.He will also try to get the world’s most populous Muslim-majority country on board as he pushes for a two-state solution for the decades-long Israeli-Palestinian conflict at a United Nations conference in June.”Naturally, the question of recognising Israel is an issue,” one of Macron’s advisers told reporters before the tour.”We understand perfectly well the sensitivities of the Muslim communities in the region” regarding the situation in Gaza, the adviser added.Macron wants to show that he is “particularly committed” to “achieving peace in the Middle East” while demonstrating no double standards on the issue in light of his efforts to solve the Ukraine war, he said.- ‘Power for peace’ -In Vietnam Tuesday, Macron presented France as a “power of peace and balance”, committed to an international order “based on law”.This was viewed as a message both to Beijing, which has become increasingly assertive in its territorial claims in the South China Sea, and to Washington over Trump’s threats of wide-ranging tariffs. Macron warned that Trump’s “constantly creating uncertainty” with trade policy was “holding back investment and the economy”.His remarks came as the Association of Southeast Asian Nations (ASEAN) — of which Indonesia is a member — said at the bloc’s summit in Malaysia it would speed up efforts to diversity trade networks in the face of Trump’s tariffs.So Macron’s office will be looking for economic wins in the Southeast Asian archipelago of around 280 million people.The new chief executive of French mining giant Eramet, Paulo Castellari, will be part of a French delegation trying to get Jakarta to increase production at the world’s largest nickel mine in eastern Indonesia.Paris also intends to step up cooperation on arms with Indonesia’s Prabowo, a former defence minister and general.While Jakarta has previously sourced fighter jets from Russia, in recent years it has acquired Rafales from French company Dassault Aviation, whose chief Eric Trappier will join the French delegation.

China is not seeking to “replace” the United States as the top trading partner of Colombia, Beijing’s ambassador to Bogota, whose president has announced a pivot to China, told AFP on Tuesday.Until recently Colombia was one of the United States’ closest trade and security partners in Latin America. But the country’s first leftist president Gustavo Petro, who has crossed swords with his US counterpart Donald Trump, is trying to steer more trade towards China.China’s ambassador to Bogota denied that Beijing was seeking to topple the United States from its pole position in Latin America.”China is coming to offer our collaboration, not to replace anyone, nor seeking to take someone’s place,” Zhu Jingyang told AFP on the sidelines of a media briefing.Earlier this month, Colombia formally joined China’s vast Belt and Road (BRI) infrastructure program.Bogota’s accession boosted Beijing’s efforts to deepen ties with Latin America, a key battleground in its confrontation with the Trump administration.It came in the wake of a showdown between Trump and Petro over deportation flights which ended in humiliation for Colombia.After initially denying entry to US military planes carrying deported Colombians in January, Bogota sent its own planes to bring them home to avoid hefty US tariffs threatened by Trump.The business community in Latin America’s fourth-biggest economy has expressed fears that Petro’s rapprochement with China could damage Colombia’s trade with the United States.The State Department’s special envoy for Latin America, Mauricio Claver-Carone, warned recently that the United States might start buying flowers and coffee — two of Colombia’s top exports to the United States — from other Latin American countries instead.Zhu accused the Trump administration of using “intimidation” and “blackmail” to try keep Colombia in its orbit.Two-thirds of Latin American countries have already joined the Belt and Road Initiative.

Wall Street shares bounced on Tuesday while Europe maintained a rally after US President Donald Trump delayed huge tariffs on imports from the EU over the long holiday weekend.New York’s main stock markets all rebounded vigorously as trading resumed after the Memorial Day weekend, with the broad-based S&P 500 finishing more than two percent higher and the tech-heavy Nasdaq rising 2.5 percent.Nvidia notably adding 3.2 percent ahead of its latest earnings.In Europe, Frankfurt hit a new record high before ending 0.8 percent in the green, while Paris finished flat and London closed up 0.7 percent.”UK and US investors returned from their respective long weekends with a spring in their step thanks to the abrupt decision to pause higher tariffs on the EU,” said Chris Beauchamp, chief market analyst at online trading platform IG.Analysts also cited a surprisingly big improvement in US consumer confidence and a pullback in Treasury yields, with the 30-year bond falling below five percent following reports Japan will temper its long-term bond issuance. “It is unwise to hope that all upcoming US data will be as encouraging as today’s confidence figure, but it is certainly a relief that US consumers have managed to maintain their sunny outlook,” Beauchamp added, as US data showed a confidence jump after five months of declines.Trump sent markets into a tailspin Friday when he threatened to hit EU goods with a 50 percent tariff from June 1, saying talks were “going nowhere.”But after a phone call Sunday with European Union chief Ursula von der Leyen, Trump delayed the levies until July 9 to give more time for negotiations.EU trade commissioner Maros Sefcovic said Monday that following calls with top American officials the bloc remained “fully committed” to reaching a trade agreement with the United States.”This postponement has helped soothe tensions following last week’s turbulence and is widely viewed as a temporary de-escalation in the ongoing trade dispute,” said David Morrison, senior market analyst at Trade Nation.Analysts cautioned, however, that Trump’s trade policies have been erratic.”Donald Trump has rolled back so many times on tariffs, that the message does not hold as much weight these days,” said Kathleen Brooks, research director at trading platform XTB.The dollar, which has slumped since Trump launched his tariffs blitz last month, gained against other major currencies on Tuesday. In Asia, Hong Kong and Tokyo closed higher but Shanghai fell.Amid oversupply fears, oil prices slid on the eve of an OPEC+ meeting to decide on crude output levels from the cartel and its partners, notably Russia. – Key figures at around 2030 GMT -New York – Dow: UP 1.8 percent at 42,343.65 (close)New York – S&P 500: UP 2.1 percent at 5,921.54 (close)New York – Nasdaq Composite: UP 2.5 percent at 19,199.16 (close)London – FTSE 100: UP 0.7 percent at 8,778.05 (close)Paris – CAC 40: FLAT at 7,826.79 (close)Frankfurt – DAX: UP 0.8 percent at 24,226.49 (close)Tokyo – Nikkei 225: UP 0.5 percent at 37,724.11 (close) Hong Kong – Hang Seng Index: UP 0.4 percent at 23,381.99 (close)Shanghai – Composite: DOWN 0.2 percent at 3,340.69 (close)Euro/dollar: DOWN at $1.1329 from $1.1387 on MondayPound/dollar: DOWN at $1.3504 from $1.3564Dollar/yen: UP at 144.34 yen from 142.85 yenEuro/pound: DOWN at 83.88 pence from 83.95 penceBrent North Sea Crude: DOWN 1.0 percent at $64.09 per barrelWest Texas Intermediate: DOWN 1.0 percent at $60.89 per barrelburs-jmb/mlm

Southeast Asian leaders expressed “deep concern” over US tariffs Tuesday, as they held a summit with China and Gulf states hailed as “a response to the call of the times” in a geopolitically uncertain world. The trade-dependent economies are looking to insulate themselves after US President Donald Trump blew up global trade norms by announcing a slew of levies targeting countries around the world, then paused most for 90 days.The Association of Southeast Asian Nations (ASEAN) released a statement on Tuesday night expressing “deep concern over… the imposition of unilateral tariff measures, which pose complex and multidimensional challenges to ASEAN’s economic growth, stability, and integration”. In another statement, the bloc stressed “our strongest resolve to stand together” in the face of the levies, and pledged to expand cooperation with other partners. Earlier in the day Malaysia, which holds the bloc’s rotating chairmanship, hosted the inaugural summit between ASEAN, China and the Gulf Cooperation Council (GCC) — a regional bloc made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.  Chinese Premier Li Qiang told the meeting that “against the backdrop of a volatile international situation”, the summit was “a pioneering work of regional economic cooperation”.”This is not only a continuation of the course of history, but also a response to the call of the times,” he said. ASEAN has traditionally served as “a middleman of sorts” between developed economies like the United States, and China, said Chong Ja Ian from the National University of Singapore (NUS).With Washington looking unreliable these days, “ASEAN member states are looking to diversify”.”Facilitating exchanges between the Gulf and People’s Republic of China is one aspect of this diversification,” he said.- ‘Timely and calculated’ -China, which has borne the brunt of Trump’s tariffs, is also looking to shore up its other markets. China and ASEAN are already each other’s largest trading partners, and Chinese exports to Thailand, Indonesia and Vietnam surged by double digits in April — attributed to a re-routing of US-bound goods.Premier Li’s participation is “both timely and calculated”, Khoo Ying Hooi from the University of Malaya told AFP.”China sees an opportunity here to reinforce its image as a reliable economic partner, especially in the face of Western decoupling efforts.”ASEAN reiterated on Tuesday it would not impose retaliatory duties on the United States — in contrast to China. Beijing and Washington engaged in an escalating flurry of tit-for-tat levies until a meeting in Switzerland saw an agreement to slash them for 90 days.Chinese goods still face higher tariffs than most though. At dinner on Tuesday, Li urged ASEAN and the GCC to “persist in opening up”.- ‘Centrality’ -ASEAN has historically avoided choosing a side between the United States and China.China is only Southeast Asia’s fourth largest source of foreign direct investment, after the United States, Japan and the European Union, noted NUS’ Chong.At a press conference at the tail-end of the talks, Malaysian Prime Minister Anwar Ibrahim vowed ASEAN would continue engaging both Washington and Beijing.”The… ASEAN position is centrality,” Anwar said, adding “it makes a lot of sense to continue to engage and have reasonably good relations” with the United States”. Anwar said Monday he had written to request an ASEAN-US summit this year, with his foreign minister saying Washington had not yet responded.Closer alignment with Beijing presents problems of its own.On Monday, Philippines leader Ferdinand Marcos said there was an “urgent need” to adopt a legally binding code of conduct in the South China Sea.Beijing has territorial disputes with five ASEAN member states in the area, with China and the Philippines having engaged in months of confrontations in the contested waters.Anwar raised the South China Sea with Li and the Philippines, saying: “I’m not saying all issues can be resolved now but there was real positive engagement.”

European and Asian stock markets mostly gained Tuesday as investors continued to react positively to US President Donald Trump’s pausing of an EU tariff threat.London led the way in Europe, up one percent in midday deals, as trading resumed after Monday’s UK public holiday. The dollar gained solidly against main rivals, while Wall Street reopens later after US Memorial Day. “US futures point to a higher open on indices, as optimism spreads after the holiday break,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown. “Trump once again has pressed the pause button, this time on proposed 50 percent tariffs on imports from the European Union, which caused nervousness at the end of last week.” Trump on Sunday delayed 50-percent tariffs on the European Union until July 9 to give more time for negotiations.The president had sent markets into a tailspin Friday when he threatened to hit EU goods with the huge tariff from June 1 as talks were “going nowhere”.EU trade commissioner Maros Sefcovic said Monday following calls with top US officials that the bloc remains “fully committed” to reaching a trade agreement with the United States.A key survey Tuesday showed that consumer sentiment in Europe’s biggest economy, Germany, inched up heading into June — but erratic US trade policy and a glum domestic economic outlook kept the gauge at low levels.The forward-looking indicator, published by pollsters GfK and the Nuremberg Institute for Market Decisions, came in at minus 19.9 points, a rise of 0.9 from the previous month.It was the third-straight increase for the regular survey of about 2,000 people, which has been boosted by a new German government vowing to kickstart the country’s economy following two years of recession.It was revealed Tuesday that Germany had overtaken Japan as the world’s top creditor, with the Asian nation losing top spot after a 34-year reign.Japan’s net external assets as of the end of last year stood at 533.05 trillion yen ($3.7 trillion), up almost 13 percent from a year earlier, according to finance ministry data.For Japan, a weaker yen contributed to increases in both foreign assets and liabilities, but assets grew at a faster pace, driven in part by expanded business investment abroad, the data added.Elsewhere on Tuesday, oil prices rose slightly on the eve of the latest OPEC+ meeting to decide on crude output levels from the cartel and its partners, notably Russia. – Key figures at around 1045 GMT -London – FTSE 100: UP 1.0 percent at 8,807.27 pointsParis – CAC 40: UP 0.4 percent at 7,855.88Frankfurt – DAX: UP 0.8 percent at 24,220.99Tokyo – Nikkei 225: UP 0.5 percent at 37,724.11 (close) Hong Kong – Hang Seng Index: UP 0.4 percent at 23,381.99 (close)Shanghai – Composite: DOWN 0.2 percent at 3,340.69 (close)New York – Dow: Closed Monday for a holidayEuro/dollar: DOWN at $1.1349 from $1.1382 on MondayPound/dollar: DOWN at $1.3540 from $1.3563Dollar/yen: UP at 144.07 yen from 142.81 yenEuro/pound: DOWN at 83.88 pence from 83.91 penceBrent North Sea Crude: UP 0.3 percent at $64.30 per barrelWest Texas Intermediate: UP 0.3 percent at $61.69 per barrelburs-bcp/ajb/lth

The world’s poorest nations face a “tidal wave of debt” as repayments to China hit record highs in 2025, an Australian think-tank warned in a new report Tuesday.China’s Belt and Road Initiative lending spree of the 2010s has paid for shipping ports, railways, roads and more from the deserts of Africa to the tropical South Pacific. But new lending is drying up, according to Australia’s Lowy Institute, and is now outweighed by the debts that developing countries must pay back. “Developing countries are grappling with a tidal wave of debt repayments and interest costs to China,” researcher Riley Duke said. “Now, and for the rest of this decade, China will be more debt collector than banker to the developing world.”Beijing’s foreign ministry said it was “not aware of the specifics” of the report but that “China’s investment and financing cooperation with developing countries abides by international conventions”.Ministry spokeswoman Mao Ning said “a small number of countries” sought to blame Beijing for miring developing nations in debt but that “falsehoods cannot cover up the truth”.The Lowy Institute sifted through World Bank data to calculate developing nations’ repayment obligations. It found that the poorest 75 countries were set to make “record high debt repayments” to China in 2025 of a combined US$22 billion. “As a result, China’s net lending position has shifted rapidly,” Duke said. “Moving from being a net provider of financing — where it lent more than it received in repayments — to a net drain, with repayments now exceeding loan disbursements.” Paying off debts was starting to jeopardise spending on hospitals, schools, and climate change, the Lowy report found. “Pressure from Chinese state lending, along with surging repayments to a range of international private creditors, is putting enormous financial strain on developing economies.”The report also raised questions about whether China could seek to parlay these debts for “geopolitical leverage”, especially after the United States slashed foreign aid. While Chinese lending was falling almost across the board, the report said there were two areas that seemed to be bucking the trend. The first was in nations such as Honduras and Solomon Islands, which received massive new loans after switching diplomatic recognition from Taiwan to China. The other was in countries such as Indonesia or Brazil, where China has signed new loan deals to secure battery metals or other critical minerals.

Equities in Asia and Europe were mixed Tuesday as investors awaited the latest developments in Donald Trump’s trade war.With Wall Street closed for a holiday, there were few major catalysts to drive business, though investors remain on their toes after the US president’s threat of 50 percent tariffs on European Union goods and subsequent delay reviving volatility.But analysts said the uncertainty caused by Trump’s capricious policy announcements, along with his plans to extend tax cuts, was hurting confidence in the US economy and pushing Treasury yields higher.”Markets are once again dancing on hot coals, front-running White House mood swings while dodging macro landmines,” said Stephen Innes at SPI Asset Management.”With yields dangling like anvils and tariff threats swinging like wrecking balls, the only thing certain is that the music won’t stop — until it does. Traders, keep your running shoes on.”Europe bounced on the news of the tariff delay, and European Commission President Ursula von der Leyen’s pledge to move swiftly on a trade deal with the White House.But Asia swung between gains and losses.Tokyo, Hong Kong, Sydney, Singapore and Wellington all rose with London as it reopened after a long weekend, while Frankfurt and Paris also extended Monday’s gains.Shanghai, Seoul, Manila, Mumbai, Jakarta, Bangkok and Taipei were slightly lower. The yen rose against the dollar after BoJ boss Kazuo Ueda said he intended to keep raising borrowing costs if the economy performs as expected.But the Japanese currency reversed course after yields on Japanese bonds sank after reports of a questionnaire from the finance ministry asking market players for their views on debt issuance.The moves come after the sale of 20-year notes saw the worst response in more than 20 years, putting pressure on officials to stabilise the market. Yields on long-term bonds sank after hitting record highs last week.The yen, which hit 142.12 per dollar in early trade, retreated to 143.86 in the afternoon.Still, the dollar remains under pressure against its main peers as investors look nervously at Trump’s trade policy and tax bill, which could add trillions to the US national debt, putting upward pressure on US yields.”In a way, all roads have led to a weaker dollar. Higher perceived US deficits have raised concerns about increased future Treasury issuance, pushing up term premium and seeing people migrate away from the dollar,” said Pepperstone’s Chris Weston.”Concerns of weaker US growth in the second half of 2025 sees dollar sellers. Tariff risk resurfaces, the dollar trades lower and when the tariff risk and the implementation date is subsequently pushed back, again we see the dollar lower.”Traders are also awaiting the release of minutes from the Federal Reserve’s May policy meeting, hoping for an idea about its plans in light of the trade war, while the central bank’s preferred inflation gauge is due at the end of the week.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 37,724.11 (close) Hong Kong – Hang Seng Index: UP 0.4 percent at 23,381.99 (close)Shanghai – Composite: DOWN 0.2 percent at 3,340.69 (close)London – FTSE 100: UP 0.9 percent at 8,794.85Dollar/yen: UP at 143.77 yen from 142.81 yen on MondayEuro/dollar: DOWN at $1.1342 from $1.1382Pound/dollar: DOWN at $1.3524 from $1.3563Euro/pound: DOWN at 83.88 pence from 83.91 penceWest Texas Intermediate: DOWN 0.4 percent at $61.29 per barrelBrent North Sea Crude: DOWN 0.3 percent at $64.56 per barrelNew York – Dow: Closed for a holiday

Southeast Asian leaders are looking to insulate their trade-dependent economies from geopolitical uncertainty, in particular US tariffs, as they hold talks with Chinese Premier Li Qiang and Gulf state dignitaries in Kuala Lumpur on Tuesday.US President Donald Trump blew up global trade norms in April when he announced a slew of punishing levies targeting countries around the world, including US allies. Though he subsequently instigated a 90-day pause for most, the experience has spurred the Association of Southeast Asian Nations (ASEAN) to accelerate efforts to diversify its trading networks.”A transition in the geopolitical order is underway,” Malaysian Prime Minister Anwar Ibrahim said Monday.  After a lavish gala dinner the night before, Tuesday sees the inaugural summit between ASEAN, China and the Gulf Cooperation Council (GCC) — a regional bloc made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. ASEAN has traditionally served as “a middleman of sorts” between developed economies like the United States, and China, said Chong Ja Ian from the National University of Singapore (NUS).With Washington looking unreliable these days, “ASEAN member states are looking to diversify”, he said.”Facilitating exchanges between the Gulf and People’s Republic of China is one aspect of this diversification.”Malaysia, which holds ASEAN’s rotating chairmanship and opened the bloc’s 46th summit on Monday, is the main force behind the initiative, Chong said. Opening the ASEAN-GCC meeting on Tuesday — China will join later in the day — Anwar said the two blocs had “the means and responsibility to rise as anchors of stability and engines for future growth”.- ‘Timely and calculated’ -Beijing, which has suffered the brunt of Trump’s tariffs, is also looking to shore up its other markets. Its foreign ministry said Monday it “look(ed) forward to strengthening cooperation” with ASEAN and the GCC.China and ASEAN are already each other’s largest trading partners, and Chinese exports to Thailand, Indonesia and Vietnam surged by double digits in April — attributed to a re-routing of US-bound goods.Premier Li’s participation is “both timely and calculated”, Khoo Ying Hooi from the University of Malaya told AFP. “China sees an opportunity here to reinforce its image as a reliable economic partner, especially in the face of Western decoupling efforts.”Beijing and Washington engaged in an escalating flurry of tit-for-tat levies until a meeting in Switzerland saw an agreement to slash them for 90 days. Chinese goods still face higher tariffs than most though. According to a draft statement seen by AFP, ASEAN will express “deep concern… over the imposition of unilateral tariff measures”. But it said earlier this year it would not impose retaliatory duties.- Treacherous waters -ASEAN as a body has historically avoided choosing a side between the United States and China. China is only Southeast Asia’s fourth largest source of foreign direct investment, after the United States, Japan and the European Union, noted NUS’ Chong. Anwar said Monday he had written to request an ASEAN-US summit this year, with his foreign minister saying Washington had not yet responded. Yet any closer alignment with Beijing presents problems of its own, despite Anwar’s insistence Monday night that “whatever is being said… we are here as a friend of China”. On Monday, Philippines leader Ferdinand Marcos said there was an “urgent need” to adopt a legally binding code of conduct in the South China Sea. Beijing has territorial disputes with five ASEAN member states in the area, with China and the Philippines having engaged in months of confrontations in the contested waters.Anwar raised the South China Sea with Li, the Malaysian prime minister said in a Tuesday Facebook post announcing the one-on-one meeting. He also told Li ASEAN “appreciates China’s dedication to regional collaboration”, with most of the topics covered relating to trade. “Other disputants… are perhaps willing to let the Philippines bear the brunt of pressure,” said Chong. Tension between Manila and Beijing “means that these issues will not fade into the background, much as some other Southeast Asian states wish to focus on economic issues”, he added. 

Indonesia is hoping going nuclear can help it meet soaring energy demand while taming emissions, but faces serious challenges to its goal of a first small modular reactor by 2032.Its first experiment with nuclear energy dates to February 1965, when then-president Sukarno inaugurated a test reactor.Sixty years later, Southeast Asia’s largest economy has three research reactors but no nuclear power plants for electricity.Abundant reserves of polluting coal have so far met the enormous archipelago’s energy needs.But “nuclear will be necessary to constrain the rise of and eventually reduce emissions”, said Philip Andrews-Speed, a senior research fellow at the Oxford Institute for Energy Studies.President Prabowo Subianto has promised to ensure energy security while meeting a pledge to eliminate coal-powered electricity generation within 15 years.Coal accounts for around two-thirds of electricity generation in Indonesia, which targets net-zero by 2050.The government wants 40-54GW of the 400GW it projects will be generated nationwide by 2060 to come from nuclear.It hopes to kickstart capacity with a reactor on Borneo “by 2030 or 2032”, according to Energy Minister Bahlil Lahadalia.It will be a small modular reactor, which has a lower capacity than traditional reactors but is easier to assemble and transport.The total number of plants planned has not been detailed, but the government has begun scouting locations — a challenge for a country located on the seismically active “Ring of Fire”.”Currently, 29 potential locations have been identified for the construction of nuclear power plants,” Dadan Kusdiana, acting secretary general of the National Energy Council (DEN) told AFP.All are outside the country’s biggest island of Java, in line with government goals to develop the archipelago’s centre and east.The sites would also put facilities near energy-hungry mining sites.- Ring of Fire -While Japan’s quake and tsunami-triggered Fukushima disaster has stalled nuclear progress in some parts of Asia, proponents say nuclear can be done safely in Indonesia.”North Java, East Sumatra, West Kalimantan and Central Kalimantan are considered as low-risk zones,” said Andang Widi Harto, a nuclear engineering researcher at Yogyakarta University.”These low seismic risk regions also coincide with low volcanic risk regions,” he added.Countries from Vietnam to Belgium are also growing or retaining nuclear capacity as they struggle to meet net-zero goals to combat climate change.While Indonesia may not be alone in the nuclear pivot, it has little domestic expertise to draw on.It will look abroad for help, said Kusdiana, citing “serious interest” from providers including Russia’s Rosatom, China’s CNNC and Candu Canada.The Indonesian subsidiary of US company ThorCon is already seeking a licence for an experimental “molten-salt reactor”.It wants to use shipyards to build small reactors that will be towed to coastal or offshore locations and “ballasted” to the seabed.Kusdiana said DEN has also visited France’s EDF SA to explore possible cooperation.French President Emmanuel Macron is due in Indonesia this week as part of a Southeast Asia tour.EDF said there were currently “no discussions underway on nuclear with Indonesia,” though its CEO Bernard Fontana will be part of Macron’s delegation.A second French firm, Orano, also said it had not discussed collaboration with Indonesia.- ‘Sceptical’ -Given the challenges, which also include connectivity issues, waste disposal and potential domestic opposition, some experts warn Indonesia’s nuclear timeline is overambitious.”I would join others who are sceptical that Indonesia can deploy nuclear power at any significant scale in the next ten years,” said Andrews-Speed at the Oxford Institute.Environmentalists would like to see Indonesia focus more on meeting its clean energy targets with renewable sources.While hydroelectric accounts for over seven percent of Indonesia’s electricity generation, solar and wind contribute tiny amounts and could be significantly ramped up, experts say.Cost and “high corruption” are also obstacles, said Dwi Sawung, energy and urban campaign manager at NGO WALHI.”There is not enough left in the government and PLN (state electricity company) budget,” he told AFP.The government has not said how much it expects the nuclear ramp-up to cost, but Kusdiana insists the money will be there.”Various potential international investors… have shown interest”, including Russia, the United States, Denmark, South Korea and China, he said.