HONG KONG: Tokyo led another plunge across Asian markets on Monday (Mar 31) while gold hit a record high as investors steel themselves for a wave of US tariffs this week that has fuelled recession fears.

Equities across the planet have been hammered in recent weeks ahead of Donald Trump’s “Liberation Day” on Wednesday, when his administration will unveil a series of levies against friend and foe alike, citing what he says are unfair trading practices.

His announcement last week that he would also impose 25 per cent duties on imports of all vehicles and parts ramped up the fear factor on trading floors, hammering car giants including Japan’s Toyota, the world’s biggest.

Governments around the world have pushed back against Trump’s tariffs, and could announce more countermeasures, while Canadian Prime Minister Mark Carney told Trump on Friday that he will implement retaliatory tariffs to protect his country’s workers and economy.

Adding to the dour mood was data showing the Federal Reserve’s preferred gauge of inflation rose more than expected last month over worries Trump’s tariffs will fan price rises and further dent hopes for interest rate cuts.

Markets fell across the board on Monday, with firms in all sectors feeling the pain.

Japan’s Nikkei 225 index plunged more than 4 per cent, extending last week’s slide, as automakers Toyota, Nissan and Mazda shed between 3 and 4 per cent, while tech investment titan SoftBank tanked more than 5 per cent.

The index’s drop put it in a correction, having fallen more than 10 per cent from its peak in December.

Zensho Holdings, which owns several Japanese restaurant franchises, plunged 3.9 percent after its beef bowl chain Sukiya said it would temporarily shut nearly all of its roughly 2,000 branches after a rat was found in a miso soup and a bug in another meal.

Seoul was also sharply lower.

“Within the Asia-Pacific region, the car levies will hit Japan and South Korea the hardest. About 6 per cent of Japan’s total exports are cars shipped to the US. In South Korea’s case, it’s 4 per cent,” Moody’s Analytics economists wrote.

“Such a sizeable tariff hike will undermine confidence, hit production and reduce orders. Given the long and complex supply chains in car manufacturing, the impact will ripple through these countries’ economies.

“Back-of-the-envelope calculations suggest the action could shave 0.2 to 0.5 percentage points from growth in each.”

BANGKOK: An anti-corruption watchdog had flagged to authorities irregularities it found in the construction of a Bangkok skyscraper before it collapsed in an earthquake last week, killing at least 12 people, the head of the group told Reuters.

Initial tests of materials gathered at the site, meanwhile, indicated the presence of substandard steel among the wreckage of the 30-storey structure, according to industry ministry officials, who added that further analysis was required.

Rescuers were continuing search and rescue efforts on Monday (Mar 31) for around 75 people feared still trapped under the rubble of the unfinished tower, which was being built for Thailand’s State Audit Office by a Chinese company and a Thai construction firm.

The government has announced an investigation into the cause of the collapse of the skyscraper, the only Bangkok building to completely crumble when a 7.7-magnitude quake struck central Myanmar on Friday and rattled neighbouring countries.

Mana Nimitmongkol, president of the Anti-Corruption Organisation of Thailand, told Reuters on Sunday it had informed the audit office about its concerns regarding the project. The government had threatened to cancel the project in January due to delays, he said.

The audit office, which has said that it will investigate the cause of the building collapse, did not answer e-mailed questions from Reuters, including whether it had considered cancelling the contract.

Construction of the building began in 2020 and is being carried out by a joint venture between Italian Thai Development PCL and China Railway Number 10 (Thailand) Ltd, a local unit of China’s state-owned China Railway Group.

Italian Thai Development and China Railway Group did not immediately comment on either the watchdog’s comments or the industry ministry’s steel tests when contacted by Reuters.

The tower was originally slated for completion by 2026 but was behind schedule. The deputy auditor general, Sutthipong Boonnithi, told reporters on Saturday that construction was only “30 per cent completed” before it collapsed.

Site visits to the project during construction by the anti-corruption group had raised concerns about delays, worker shortages and possible corner-cutting, Mana said, whose organisation scrutinises some 170 government projects around Thailand.

“Sometimes the number of workers on site were much fewer than there should be, causing delays,” he said. “Potentially there was a rush to complete the project towards the end, which could cause a drop in the standard of work.”

Share prices of ITD closed 27 per cent lower on Monday against a benchmark drop of 1.48 per cent.

The junta’s previous death toll was 33, with more than 235,000 people displaced, according to figures released on Friday.

Swathes of farmland have been inundated in central regions, including around the sprawling, low-lying capital Naypyidaw.

There have been reports of landslides in hilly areas but with roads and bridges damaged and phone and internet lines down, compiling information has been difficult.

The floods have heaped more misery on the country where war has raged since the military seized power in 2021.

More than 2.7 million people were already displaced in Myanmar by the conflict.

Myanmar’s junta chief made a rare request for foreign aid to deal with the floods, state media reported on Saturday.

The military has previously blocked or frustrated humanitarian assistance from abroad.

Last year it suspended travel authorisations for aid groups trying to reach around a million victims of powerful Cyclone Mocha that hit the west of the country.

Typhoon Bebinca was expected to make landfall along a swath of coastline including the megacity of Shanghai sometime between Sunday night and Monday morning, according to Beijing’s emergency management ministry.

The ministry said in a statement on Saturday that the storm would cause “heavy to torrential” downpours with “local heavy or extremely heavy rainstorms” between Sunday and Tuesday.

Officials held a meeting Saturday to “research and deploy flood and typhoon control work in key areas”, according to the statement.

The water resources ministry on Saturday launched a level-four emergency response – the lowest in a tiered system – for flooding in Shanghai and the provinces of Jiangsu, Zhejiang and Anhui, state news agency Xinhua reported.

Bebinca’s expected landfall comes during the Mid-Autumn Festival, a public holiday in China.

The emergency management ministry said officials must “pay close attention to the development of the typhoon”, adding that “many people will be travelling, mobility will be high and safety risks will be prominent”.

Shanghai municipal authorities urged residents on Sunday to “strengthen efforts to guard against harmful effects of the typhoon on high-altitude work, transportation, infrastructure and agriculture”.

Some flights to and from major airports in Shanghai were cancelled or rescheduled on Sunday because of the typhoon, state media reported.

Passenger shipping lines were scheduled to be suspended in Shanghai from Sunday due to the typhoon, according to an official statement on the social media account of the municipal port and shipping development centre.

China is the world’s biggest emitter of the greenhouse gases that scientists say are driving climate change and making extreme weather more frequent and intense.

COULD THE MILITARY STILL BE PART OF THE GOVERNMENT?

Historically, the military has played an important role in Thai politics. The king of Thailand is the head of the Royal Thai Armed Forces.

In the previous election in 2019, Pheu Thai won the most seats and announced a seven-party alliance with Future Forward. Move Forward is a successor to the now-disbanded Move Forward.

However, Pheu Thai failed to form the government after all but one senator – Senate speaker Pornpetch Wichitchonchai – voted for Gen Prayut’s premiership.

While it is too early to tell how the Senate might influence the outcome this time round, a political, economic and development lecturer at Thammasat University noted that Move Forward has clearly stated that it would not form a coalition with a political party that is backed by the military. 

In terms of electoral pledges, there are stark differences between Move Forward and the military-backed parties.

Mr Virot Ali noted that for instance, Move Forward wants to amend section 112 of the Thai Criminal Code. Also known as the lese-majeste law, it stipulates that whoever defames, insults or threatens the king, the queen, the heir-apparent or the regent shall be punished with imprisonment of three to 15 years.

However, Gen Prayut, among others, has said that section 112 should remain as it is.  

Therefore, Mr Virot Ali predicted that the military-backed senate would likely not vote for a prime minister from Move Forward. “This could lead to a stalemate,” he said. 

On Monday, Mr Pita said during his press conference that the senators should respect the wishes of the people. 

“It is time for the 250 senators to think and decide their stance, whether they would listen to the people’s wish. If they care about the people, there will be no problem.”

Additional reporting by Vee Intarakrug.

According to Bernama, the Chief Secretary to the Government Mohd Zuki Ali was quoted as saying that King Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah had consented to Mr Azam’s reappointment. His contract was extended by a year. 

Mr Anwar, who is also Pakatan Harapan (PH) chairman, noted that Mr Azam was appointed as chief commissioner of the country’s anti-graft agency during former prime minister Muhyiddin Yassin’s administration. 

Mr Azam was appointed in March 2020 after his predecessor Latheefa Koya resigned following the fall of the short-lived PH government at that time. 

Mr Azam’s recent contract extension raised eyebrows, with critics pointing out that he had previously been embroiled in a controversy surrounding his alleged ownership of millions of ringgit in shares despite a RM100,000 (US$22,200) cap on equity holdings for civil servants.

According to Free Malaysia Today (FMT), the Malaysian United Democratic Alliance’s (MUDA) Selangor chapter expressed their disappointment over the contract extension, particularly since the party and PH leaders had joined the #TangkapAzamBaki, or #CaptureAzamBaki, rally in January last year when the controversy arose. 

“The issue is not resolved and the investigations into PH leaders who were involved in the protest have yet to be wrapped up, but Azam has been (given a contract extension) by the new government,” it reportedly said last Thursday. 

Following reports of Mr Azam’s alleged ownership of millions of ringgit of corporate stock in 2021, Mr Azam reportedly said last year that he gave his brother permission to buy shares using his account in 2015 and that his superiors were informed of the matter.

Local media subsequently reported that the Securities Commission and an MACC advisory panel cleared Mr Azam of wrongdoing. 

PHNOM PENH: Everyone in Phnom Penh, it seems, wants a selfie with Bou Samnang.

The Cambodian runner has become a star of the Southeast Asian (SEA) Games since her gritty performance in the 5,000m event. Although she came last, her determination to finish the race under torrential rain charmed the country and even won plaudits from Prime Minister Hun Sen.

Videos of her crying after crossing the line have gone viral.

“I can say now I’m famous,” the 20-year-old said at the Morodok Techo Stadium, the scene of her unlikely rise to prominence, where passers-by were lining up for photos with her.

“Although I lost, they support me from the bottom of their hearts.”

This week’s race was not the first time Bou Samnang has had to show determination, but is the latest step on an athletics journey that started on ill-equipped dirt tracks and has defied health problems and bereavement.

“I knew I was losing. The rain was so heavy,” said the Phnom Penh native, whose mother is a housewife and whose father died in an accident a few years ago.

“I had the right to abandon the race, but first I have a duty to represent Cambodia. So I did not give up.”

BANGKOK: A general election kicked off on Sunday (May 14) in Thailand, where a new set of parliamentarians in the House of Representatives will be elected to form the next government.

About 52 million people are eligible to cast their votes nationwide before the polls close at 5pm.

More than 2 million people had already turned up for early voting on May 7. 

A total of 500 members of the House of Representatives will be elected on Sunday. 

Four hundred of them will be chosen in constituency elections. The other 100 will be elected from the national party lists – a type of proportional representation where multiple candidates are elected from a list prepared by their respective parties, based on the total votes the party receives.

In the constituency elections, 400 seats are up for grabs and 4,710 candidates are competing for them. On the national party lists, there are nearly 1,900 parliamentary candidates from 67 parties.

Each voter will receive two ballots – one for the constituency and the other for the party list.

HOW IS THE PRIME MINISTER SELECTED?

Once the 500 seats in the House of Representatives are decided, the race for the premiership begins. This time, 62 contenders from 43 parties are running for the country’s top office.

Under the current constitution, each political party can submit up to three candidates for the premiership. However, only parties with at least 25 elected Members of Parliament (MPs) can nominate a prime minister.

Five parties met the requirement in the previous election in 2019. They were Pheu Thai, Palang Pracharat, Democrat, Bhumjaithai and Future Forward, which was disbanded a year later.

The nomination must then be endorsed by at least 50 elected MPs – or no less than one-tenth of the Lower House’ total members – before a vote to select the prime minister can take place in a joint sitting. 

This process involves both the 250-member Senate and the House of Representatives. 

A prospective prime minister must be approved by more than half of the combined assembly. This means a candidate who can garner at least 376 votes – either from both Houses or only from the Lower House’s 500 members – will win the premiership.

At the last election in 2019, the Pheu Thai Party won the most number of seats in the Lower House with 136 MPs but it was unable to garner enough support to form a coalition to govern the country. 

Palang Pracharat, the military-linked party that was then led by Prayut Chan-o-cha and which had won 115 seats in the election, then worked with other parties to secure a majority in the Lower House to lead the government. 

PBOC Governor Yi Gang didn’t seem too troubled during a recent speech to the Peterson Institute for International Economics in Washington. He observed that for the past decade, inflation in China has averaged 2 per cent, a level targeted in some way by most monetary authorities. “Two per cent is the central banker’s dream,” Yi quipped.

PBOC HAS TO ACT NOW 

In a note this week, Bank of America assessed the prospects of deflation in China. While a sustained decline in prices is unlikely, inflation will remain very muted. The firm’s economists note Japan’s inflation is higher than its Asian neighbour, with all the attendant risks that brings:

“It almost appears that when major central banks find it hard to tame the inflation beast, the PBOC would have ranked high on the scorecard for inflation control … However, a central bank’s mandate is not likely supposed to push inflation down as much as possible.

“When inflation is too low, the lack of confidence in consumer spending and business expenditure could lead to further growth slowdown, making deflationary expectation permanent and incapacitating monetary policy intervention. Relative to the 3 per cent target set by the National People’s Congress, sub-1 per cent CPI inflation is perhaps too low.”

Haruhiko Kuroda, who retired last month after 10 years leading the Bank of Japan, might agree. Kuroda often sounded like he wasn’t trying to reflate an economy as much as change psychology. He often complained about a “deflationary mindset”. If Yi isn’t thinking about this, he should be.

Unlike his counterparts, the PBOC chief isn’t remotely master of his own destiny. The agency isn’t independent and key decisions need to be walked upstairs. It may not be enough to just signal a commitment to maintaining the recovery. Some action may be needed.

It would be too bad if China let this recovery drift. The stakes are too high.

BEIJING: China will fully implement the youth employment priority policy and vigorously explore market-based employment channels, China vice premier Ding Xuexiang said on Thursday (May 11).

China will ensure that the number of college graduates accepted by central-owned and state-owned enterprises is no less than last year, Ding was cited by the official Xinhua news agency as saying.

The government should implement various preferential policies and guide college graduates to find jobs in communities, Ding said.

The latest job-supporting steps come after a recovery in the world’s second-largest economy from three years of pandemic lockdowns has been gradual and uneven. Domestic demand is still frail, evidenced by deepening deflationary pressures and tumbling new bank loans.

China’s cabinet last month unveiled plans to boost employment, including supporting financial institutions to offer loans to small firms and issuing subsidies to firms that hire college graduates or unemployed young people.