Letter from Nikkei Asia's editor: Asia faces a new Trump era

Good afternoon. For some time, governments across Asia have been trying to divine the implications of a second Donald Trump presidency in the U.S. Now that he has indeed secured victory, sweeping all the battleground states in the process, we must face the reality of his presidency for the next four years, which will likely look very different from his first stint at the helm.

In Japan, where the term "moshi-tora" (meaning "if Trump becomes president") has been ubiquitous since last year, the mental preparation appears to have begun quite early. The expression first appeared in the Nikkei newspaper in 2016, during Trump's first run at the Oval Office. According to the reporter who first introduced the phrase (and who now happens to be the market editor at Nikkei Asia), "moshi-tora" was used mostly only in market circles, where participants tend to consider worst-case scenarios.

Fast forward to this year, and "moshi-tora" morphed into "hobo-tora" (meaning "almost certainly President Trump"). The Japanese government signaled its own form of preparation last year by replacing its ambassador to the U.S., and in January, Sen. Bill Hagerty -- Trump's former ambassador to Japan -- gave a welcome speech at an embassy party that some interpreted as laying the groundwork for Trump's return.

As we move into the final stretch of a year packed with major elections, it's worth taking a more objective look at the recent U.S. vote. As the Japanese saying goes, there is no mystery in defeat (though there can be mystery in victory), and the reasons for Kamala Harris' loss seem clear. Put more simply, from Japan to South Korea and even India, the ruling parties have faced significant voter frustration, largely due to the rising cost of living and other economic pressures. These issues have left many feeling dissatisfied and have caused major setbacks for those in power.

My suggested reads

1. Southeast Asia is positioning itself at the center of global trade, capitalizing on its diplomatic neutrality to engage with a diverse range of economies embroiled in political and economic disputes. As a result, the region's external trade is expected to grow by $1.2 trillion between 2022 and 2032, the largest projected increase of any region worldwide.

2. From a palm oil producer to a grocery chain, Malaysia has had many new initial public offerings this year thanks to its robust economy. The chief executive of the local stock exchange says the country's IPO boom will continue next year; he is expecting 50 new listings, the most since 2005.

3. Apple has approached supplier Foxconn about building AI servers in Taiwan that will help power the iPhone maker's AI platform, Apple Intelligence. But Foxconn is already busy filling orders for Nvidia's AI servers, and sources say it may not have the capacity to take on this additional business.

4. Southeast Asian hotel chain RedDoorz has used its proprietary tech to provide a bridge between price-conscious travelers, particularly millennials and Gen Zers, and budget hotels. The nine-year-old company now has 4,200 properties on its books across the region and expects to be profitable for the first time this year.

5. Busan, South Korea's second-largest city, is often overshadowed by Seoul. However, this dynamic port town in the country's southeastern corner is gaining increasing attention for its world-class art scene, vibrant food culture, enticing beaches and more. Here's our list of things to see, eat and do in what's been called the "Miami of South Korea."

Through the lens

This week's top photo pick: Graduates from the Institute of Teacher Education Malaysia throw their graduation caps into the air in front of the prime minister's office in Putrajaya, Malaysia, on Nov. 5. (Photo by Yuki Kohara)

Check out more of our photo coverage here.

Wishing you a wonderful weekend!

Shin Nakayama

Follow me on X (formerly Twitter) @ShinNakayama_NA