 | Our Big Story this week takes a close look at elephants in Thailand. The piece compels us to think about animal rights and the relationship between humans and animals.
We often see reports of elephants being killed in Africa by illegal ivory poachers. To most people, such abuse of wildlife is unacceptable. But how do we feel about keeping elephants in a zoo? How about going on ecotours in an elephant sanctuary? If an indigenous tribe has preserved a long tradition using elephants for forestry, should it be criticized for cruelty?
Thai people have long lived together with elephants. Often, these mighty creatures help people carry large, heavy objects, much like horses or oxen. In modern times, elephants have come to play a key role in local tourism businesses as well. To some people, the idea of keeping these animals in a zoological garden is unacceptable; others believe that showing elephants to children will teach them the sublime magnificence of nature.
The Big Story describes how the Thai government is seriously considering using legislation to promote moderation and pragmatism regarding animal welfare. While there is no single solution that will satisfy everyone, there can be no doubt that we are living in a time in which providing the best possible living conditions for animals in zoos is a must.
This week's Asia Insight is a collaborative effort by our reporters in Singapore, Seoul, Manila, Bangkok, Taipei and Tokyo. All the reports from the writers indicate serious inflation, caused by supply chain disruptions, the Ukraine war, and pent-up demand stemming from the two-year-long pandemic, and some countries are tightening their monetary policies.
The story does not take a deep dive into Japan's macroeconomic policy, but it addresses how the government is trying to ease surging prices, while the central bank is seeking to maintain strong monetary easing. It is a puzzling policy mix, because monetary easing could cause the yen to weaken and eventually push up import prices.
No wonder the Japanese currency has plunged to a seven-year low and the nation's monetary authorities have suddenly started supporting the yen through a "verbal intervention."
Business Spotlight might convince you that price increases for automobiles are inevitable. Toyota Motor, for example, expects a negative impact of 630 billion yen ($5.1 billion) for the fiscal year due to the surge in raw materials prices.
"The Ukraine war, chip shortages and COVID-19 disruptions all come at a time of transition for the auto industry," the story's author, Rurika Imahashi, explains.
Market Spotlight focuses on the premium for mainland stocks over their Hong Kong counterparts. There are over 140 mainland Chinese companies with shares dually listed in Hong Kong and either in Shanghai or Shenzhen. Only China Merchants Bank has cheaper A-shares, and on average, mainland investors were paying 6.6 times as much. In terms of voting rights and dividends, they are the same for both shares. The story suggests the A-shares on the mainland are overly evaluated, even if arbitrage is difficult.
Lastly, for your weekend reading, I recommend the opinion piece by Sergiy Korsunsky, Ukraine's ambassador to Japan. In it, Korsunsky urges China to stand with Ukraine, not Russia.
Considering the strong military and economic ties between Ukraine and China, the ambassador's plea is understandable. For one thing, it was Ukraine that sold China its first aircraft carrier, the Liaoning. Looking at trade figures for 2021, Chinese exports to Ukraine increased 36.8% and imports surged 25.2%, according to Xinhua News Agency. China provided COVID-19 vaccines to Ukraine, and the latter ships iron ore, corn, vegetable oil and more to the Asian giant.
In addition, under Beijing's Belt and Road Initiative, Kyiv and Wuhan were connected by a direct freight train service in 2020, with Kyiv and Xian similarly linked in 2021. China has good reason to stand with Ukraine, in theory.
Nikkei Asia provides you information on the Ukraine war from an Asian angle. "Ukraine latest" is free to read, and we also publish our news by Telegram, in the belief that both Ukrainians and Russians should have a chance to obtain reliable and unbiased information from us.
Stay safe and healthy, and have a wonderful weekend!
Shigesaburo Okumura
Editor-in-chief, Nikkei Asia
Follow me on Twitter @ShigesaburoO
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