French President Emmanuel Macron is embarking on a four-day trip to East Asia, starting in Tokyo and then moving to Seoul, marking his fourth visit to Japan and his first to South Korea during his nearly nine-year presidency. The visit coincides with the 140th anniversary of diplomatic ties between France and South Korea. Macron is expected to meet with Japanese Prime Minister Sanae Takaichi to discuss cooperation on next-generation nuclear reactors, as Tokyo seeks ways to reduce its high dependency on imported fossil fuels. This comes amid fallout from the U.S. and Israel's attack on Iran and a growing global energy crisis, which has already impacted energy supplies, prices, and company operations across Asia [1].
The Bank of Japan (BOJ) is set to release its quarterly tankan business confidence survey, the first since the central bank raised rates in December. Market watchers forecast that business sentiment is likely to improve, but forward outlooks may be clouded as companies remain guarded about the future business environment due to the ongoing conflict in the Middle East. The survey will provide more data on the business and economic impact of the war, quantifying some of the effects already felt in the region [1].
Earnings reports from major Chinese oil and gas companies, such as PetroChina, are expected to offer insights into the state of the industry as the war in Iran sends shock waves across global energy markets. Additionally, Chinese real estate company Country Garden, which reported one of the biggest losses in global corporate history for 2023 and has been restructuring billions in debt, will release its results, followed by China Vanke later in the week [1].
Singapore is set to release official fertility numbers for 2025, with Deputy Prime Minister Gan Kim Yong reporting a preliminary resident total fertility rate of 0.87 for last year, a new low compared to 0.97 the year before and 1.24 a decade ago [1].
CONCLUSION
Macron's visit to East Asia highlights France's efforts to strengthen ties with Indo-Pacific allies amid global energy uncertainty and geopolitical tensions. The upcoming BOJ tankan survey and Chinese energy company earnings will provide further clarity on the economic impact of the Middle East conflict. Market sentiment remains cautious, with forward-looking outlooks clouded by ongoing instability.