China's Li Qiang in Europe, Modi visits U.S., Yoon to Vietnam

China's Li Qiang in Europe, Modi visits U.S., Yoon to Vietnam

Welcome to Your Week in Asia.

U.S. Secretary of State Antony Blinken is in Beijing to facilitate communication with China amid deteriorating ties between the world's two largest economies. His February trip was canceled after a suspected Chinese spy balloon floated over the U.S.

Several Asian leaders will be traveling this week: Chinese Premier Li Qiang is paying official visits to Germany and France; South Korean President Yoon Suk Yeol will also be in France before flying to Vietnam; Indian Prime Minister Narendra Modi is expected to meet with U.S. President Joe Biden during a trip to the U.S.

On the corporate front, many companies, including Sony and SoftBank Group, will hold shareholder meetings.

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This is an adapted version of Nikkei Asia’s Your Week in Asia newsletter - a briefing of the most important business, economic and political events happening across Asia this week.?Register to our full selection of newsletters.


MONDAY

Hong Kong begins yuan share trading

Hong Kong kicks off yuan-Hong Kong dollar dual currency trading model of some 24 listed securities. It's part of Beijing's effort to internationalize the controlled currency. The launch comes with the yuan's value on the wane.


TUESDAY

Chinese Premier meets German Chancellor

Chinese Premier Li Qiang remains in Germany and France on his?first overseas trip since becoming the country's No. 2 leader in March. The six-day tour, which started Sunday, aims to restore ties amid China's souring relations with the West. Li will meet German Chancellor Olaf Scholz for the seventh China-Germany intergovernmental consultation and also attend a New Global Financing Pact conference in Paris later in the week.

Yoon meets Macron in Paris

South Korean President Yoon Suk Yeol lunches with French leader Emmanuel Macron at Elysee Palace as Seoul tilts more toward European issues, including support for Ukraine. Yoon will also take part in the general meeting of the Bureau International des Expositions to promote Busan's bid for the World Expo 2030.

China loan prime rate decision

Following?policy rate cuts last week, expectations are for the People's Bank of China to lower the lending rates for corporate and household loans as well as mortgages. The expectations come after business activities in May weakened from the month before, affecting real estate investment, industrial production and consumer spending.

AGM: Sony, Nidec


WEDNESDAY

Modi visits U.S.

Indian Prime Minister Narendra Modi undertakes his state visit to the U.S. at the invitation of President Joe Biden. During his four-day stay, he and Biden are expected to seal key defense deals, including on joint production of fighter jet engines in India and the purchase of armed drones by New Delhi, as they seek to boost military ties amid growing Chinese assertiveness in Indo-Pacific.

Italian warship makes first Yokosuka port call

The Italian Navy's Francesco Morosini pays a port call in Japan, part of a five-month deployment to the Indo-Pacific region. The Thaon di Revel Class patrolling vessel will moor at Yokosuka Naval Base for seven days, making it the first Italian Navy asset to anchor at a Japanese port. It follows fellow European warships visiting Japan in recent years, including a French Navy state-of-the-art frigate that has been deployed in the region since April and made a port call in Tokyo in May.

Japan May tourism statistics

Japan expects its foreign visitor arrival data for May to show a continued recovery from COVID. The country at the end of April ditched a vaccine certificate requirement for arriving visitors, and retail outlets have already reported a strong increase in duty-free sales.

AGM: SoftBank Group, Compal Electronics


THURSDAY

Yoon travels to Vietnam

Following his trip to France, Yoon makes a three-day state visit to Vietnam, where he will summit with Vietnamese President Vo Van Thuong on how to develop a comprehensive strategic partnership. Vietnam is South Korea's third-largest trade partner as Samsung, LG and other big South Korean conglomerates have smartphone, home appliance and other factories in the Southeast Asian country.

Monetary policy: Turkey, Indonesia

Turkey is expected to deliver a big rate hike at the first monetary policy meeting presided over by?Hafize Gaye Erkan, the country's first female central bank governor and a former Goldman Sachs banker. Seeking clues to gauge her willingness to recapture orthodox monetary policy and part ways with President?Erdogan's heterodox views, markets will closely watch her policy guidance. With the country's inflation rate hovering around 40%, expectations are for the bank to at least double its policy rate of 8.5%.


FRIDAY

Consumer price index: Japan, Singapore

Japan and Singapore release their inflation data for May. Japan's headline consumer inflation is likely to ease but stay above 3% in April. A massive government program to subsidize utility costs has taken some pressure off headline inflation, but a weaker yen and rising wages are driving up service price inflation.

AGM: Mitsubishi Corp., Nintendo


WEEKEND

Pink Dot Singapore

Following the official?striking of a law banning gay sex earlier this year, Singapore holds Pink Dot, a landmark LGBTQ+ rally. Organizers will celebrate LGBTQ+ families and affirm they have a place in the country, thus standing up to segments claiming LGBTQ+ groups threaten traditional family values.

G7 Ministerial Meeting on Gender Equality and Women's Empowerment in Nikko, Japan

Officials in charge of gender equality from Group of Seven member countries gather in the historic town of Nikko, north of Tokyo, on Saturday and Sunday. Attendees will discuss gender-related promises made in the G7 leaders' communique, which was announced in Hiroshima in May and commits members to the promotion of gender equality and diversity in education, politics, crisis response and business.

World Chinese Entrepreneurs Convention, Bangkok

The Thai-Chinese Chamber of Commerce opens the?World Chinese Entrepreneurs Convention (WCEC) at the Queen Sirikit Convention Center in Bangkok, with more than 4,000 Chinese businesspeople from around the world expected to gather for discussions, exhibitions and networking purposes. With China last year becoming Thailand's largest source of foreign direct investment, the event should further catalyze investment inflows from Asia's largest economy.

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