标签： Asia

Japanese automaker Honda Motor Co. has delivered a stunning first-quarter fiscal result, with net profits more than doubling year-over-year, marking a sharp milestone in the company’s effort to rebound from its first full-year operating loss in corporate history. The Tokyo-based manufacturer announced Wednesday that net income for the April-June quarter reached 456.9 billion Japanese yen, equivalent to approximately $2.9 billion, jumping from 196.6 billion yen recorded in the same three-month period last year.

Quarterly total revenue also climbed 13.5% year-over-year to hit 6.06 trillion yen, or $38 billion, driven by strong consumer demand for Honda’s passenger vehicles in the U.S. and Indian markets. The company, which produces models ranging from the popular Accord sedan and Fit subcompact car to the iconic Super Cub motorcycle, saw particularly robust gains in its two-wheeler segment, with motorcycle sales surging across Brazil and India to deliver outsized profitability. Automobile sales grew steadily in Honda’s home market of Japan and the U.S., but continued to face headwinds in the world’s largest passenger vehicle market, China.

Honda’s recent turnaround effort follows a difficult full fiscal year ending in March 2024, when the company posted a net loss of 423.9 billion yen ($2.7 billion). At the time, the automaker attributed the underperformance to massive unplanned costs tied to overly ambitious electric vehicle development plans that failed to meet original targets. Company leadership also cited policy shifts from the former Trump administration as a key external headwind: the Trump administration rolled back federal EV incentive programs, paused funding for state-level EV charging infrastructure expansion amid soaring global gas prices driven by the conflict in Iran, and implemented steep 25% tariffs (later lowered to 15%) on imported automobiles and auto parts, which eroded Honda’s export margins. After discovering slower-than-expected consumer adoption of fully electric vehicles, Honda has scaled back many of its planned EV model launches to refocus on segments with stronger current demand.

To address its ongoing sales challenges in China, Honda Chief Financial Officer Masao Kawaguchi told reporters that the company is adjusting its product lineup to align with the unique preferences of Chinese consumers, which differ significantly from buyer tastes in North America and other Asian markets. Kawaguchi noted that full strategic adjustments will require one to two more years of focused investment and localization, adding that Honda will fully redirect dedicated resources to the Chinese market to drive a rebound.

A favorable foreign exchange environment also provided a major boost to Honda’s first-quarter results. A weaker yen against the U.S. dollar throughout the quarter translated into higher yen-denominated earnings for Honda’s overseas sales, a longstanding advantage for Japanese export-focused manufacturers. While recent joint U.S.-Japan currency intervention has lifted the yen’s value slightly, the currency’s average depreciation over the past 12 months still delivered significant bottom-line gains for the quarter, according to Kawaguchi, who described the overall first-quarter performance as “very healthy.”

Buoyed by the strong start to the fiscal year, Honda has upgraded its full-year net profit forecast from 260 billion yen ($1.6 billion) to 400 billion yen ($2.5 billion), projecting a full return to annual profitability after last year’s loss.

Looking ahead, the company is facing a new short-term disruption following the magnitude 7.1 earthquake that struck Kumamoto, southwestern Japan, last week. Like other major Japanese automakers with production facilities in the region, Honda temporarily suspended operations at some plants and saw minor supply chain interruptions. Honda is scheduled to enter its annual company-wide summer break later this month, and company officials stated they expect production and logistics to return to normal once operations resume after the break. The full financial impact of the earthquake on full-year production volumes remains under assessment.

Investors reacted positively to the strong earnings report, driving Honda’s share price up 3.9% in Tokyo trading following the results announcement.

BANGKOK – Global financial markets kicked off mid-week with widespread gains on Wednesday, as a record-breaking rally on Wall Street fueled investor optimism across Asia, paired with sliding oil prices lifted by growing hopes for diplomatic progress that could de-escalate conflict tensions in the Middle East and reopen a critical global oil chokepoint.

The wave of buying swept across major East Asian benchmarks, with all three top regional indexes posting gains exceeding 3%, led by a powerful resurgence in semiconductor and artificial intelligence (AI)-focused companies that have dominated market momentum this year. Japan’s Nikkei 225 climbed 3.3% to close at 66,068.24, with memory chip manufacturer Kioxia jumping 6.3% and chip testing gear producer Advantest soaring 6.9% by the closing bell. In South Korea, the Kospi notched an even steeper 4.4% gain to reach 6,642.02, led by a 6.7% increase for top memory chipmaker SK Hynix, while tech conglomerate Samsung Electronics added 4.1% to its value. Taiwan’s Taiex advanced 3.1%, with world-leading contract chip manufacturer Taiwan Semiconductor Manufacturing Company (TSMC) rising 3.5% to support the broader index.

Neil Newman, head of strategy at Astris Advisory Japan, noted that AI-linked stocks are the clear engine behind the day’s rally. “Clearly today the market is rallying on the back of AI stocks. You look across the other sectors, there’s a bit of activity here and there but really the focus has been back on semiconductors, technology and AI,” he explained.

Gains extended across other regional markets as well, though at a more moderate pace. China’s Shanghai Composite Index picked up 1.3% to finish at 3,873.56, while Hong Kong’s Hang Seng Index edged up just 0.1% to 25,881.20. Australia’s S&P/ASX 200 added 0.7% to close at 9,209.00.

Alongside the AI boom, sliding crude oil prices also gave markets a broad boost, as growing diplomatic hopes for a resolution to tensions blocking the Strait of Hormuz eased concerns about global energy supplies. The international benchmark Brent crude fell 1.2% to $78.43 per barrel in early Wednesday trading, following a 5.3% plunge on Tuesday that came as reports emerged of progress toward a deal between Iran and Oman to reopen the strategic strait – a passage through which roughly 20% of the world’s daily oil supply transits. That deal is reportedly contingent on the United States lifting its current blockade on Iranian ports. Through July, oil prices swung wildly between $72 and $102 per barrel, driven by persistent uncertainty over when Middle East tensions would ease to allow unimpeded crude exports from the Persian Gulf. U.S. benchmark West Texas Intermediate crude also slipped 1.1% to $74.96 per barrel on Wednesday.

The positive momentum in Asia followed a record-setting session on U.S. markets Tuesday, where stronger-than-expected corporate earnings across a wide range of sectors helped ease investor jitters. The broad S&P 500 jumped 1.8% to surpass its previous all-time high set in June, while the Dow Jones Industrial Average added 1.7% to extend its own record high set a day earlier. The tech-heavy Nasdaq composite led the U.S. rally with a 2.6% gain.

Strong second-quarter earnings reports have helped reassure investors that sky-high valuations for AI-focused companies are grounded in actual growing profits, easing fears of an overinflated stock bubble driven by AI hype. Data analysis and AI firm Palantir Technologies led the earnings winners, surging 29.5% after the company reported a 93% year-over-year revenue jump that CEO Alex Karp described as an “otherworldly” quarter. Heavy equipment manufacturer Caterpillar also outperformed analyst expectations for both profit and revenue, climbing 5.6% – the company is also benefiting from the AI boom via rising orders for turbines that power energy-hungry AI data centers. Top U.S. semiconductor stocks also notched broad gains: Nvidia added 2.6%, Broadcom jumped 6.6% and Micron Technology rose 7.6%.

Not all U.S. stocks moved higher, however: Chipotle Mexican Grill shares tumbled 9.7% after the chain removed jalapeño peppers from a number of locations following a linked salmonella outbreak, sparking investor concerns over near-term profit impacts. The company noted that Minnesota public health officials no longer have active concerns related to its operations.

New economic data released this week also reinforced the resilience of the U.S. economy, even as inflation remains above policymakers’ target levels. The U.S. Labor Department reported that employers posted nearly 7.4 million open job positions at the end of June, a small slowdown from May’s level but broadly in line with economist forecasts, signaling ongoing labor market stability.

In currency trading early Wednesday, the U.S. dollar edged slightly lower to 157.48 Japanese yen, down from 157.74 yen in the prior session. The euro inched up to $1.1540 from $1.1532 against the U.S. dollar.

Summarizing the market mood, Newman noted that while risks remain, the outlook has brightened considerably: “All in all, it’s looking much brighter. We’re still not completely out of the woods yet, but I think we’re seeing some route out of this now and it’s been reflected in the markets.”

Reporting contributions came from Matt Ott in Washington, Stan Choe in New York, and Mayuko Ono in Tokyo.

Escalating geopolitical tensions and sustained conflict between the United States, Israel and Iran centered on the Strait of Hormuz have delivered a massive windfall to Saudi Aramco, with the state-owned Saudi energy giant reporting a 33% year-over-year jump in second-quarter 2025 profits, the company announced Tuesday.

Adjusted net income for the April-to-June period climbed to $33.4 billion, up from $25.1 billion in the same quarter last year, as persistent fighting and shipping disruptions through the world’s most critical energy chokepoint pushed global crude prices higher while Saudi Arabia’s unique infrastructure allowed it to keep exporting at near-normal levels.

Though a temporary ceasefire between the U.S. and Iran was reached in April and extended in June, low-intensity conflict has continued unabated. Iran has stepped up efforts to assert dominance over the 21-mile-wide Strait of Hormuz, through which roughly 20% of global oil supplies transit daily, and has attacked dozens of commercial vessels attempting to pass through the waterway via Oman’s territorial waters. In retaliation for Iranian attacks, the U.S. has carried out airstrikes on Iranian targets, and Iran has responded by striking infrastructure in U.S.-aligned Gulf states including Kuwait and Bahrain. These sustained disruptions pushed Brent crude, the global benchmark for oil prices, above $100 per barrel in both May and July, with refined petroleum products — including diesel, jet fuel, and gasoline — seeing even steeper price jumps. Multiple Gulf oil producers including Iraq, Kuwait, Bahrain and Qatar have been forced to cancel energy shipments or drastically cut export volumes as a result of the chaos.

Unlike its regional neighbors, Saudi Arabia has maintained steady exports, moving roughly two-thirds of its pre-conflict production capacity to global markets via the East-West Pipeline, a strategic infrastructure asset that connects the kingdom’s major eastern oil fields directly to the Red Sea export terminal of Yanbu, completely bypassing the Strait of Hormuz.

In an official press statement accompanying the earnings release, Aramco CEO Amin Nasser highlighted the critical role of this pre-planned infrastructure in enabling continuous operations through the crisis. “Despite the unprecedented supply disruption through the Strait of Hormuz, we continued to demonstrate our ability to maintain business continuity by capitalising on our diverse asset base and multi-decade planning, including strategic infrastructure such as the East-West Pipeline, storage capacity, and export terminals,” Nasser said.

Aramco’s successful use of the bypass pipeline has spurred regional governments to accelerate plans for their own alternative energy transit infrastructure, with industry analysts projecting tens of billions of dollars in new infrastructure investment across the Middle East over the coming years to reduce reliance on the Strait of Hormuz.

Artem Abramov, deputy head of analysis at energy research firm Rystad Energy, told Middle East Eye that regional governments have undergone a major shift in priority after the crisis. “When we speak to our customers in the region, they say they never want to deal with this again,” Abramov said. “These bypass projects will move forward.”

Already, the United Arab Emirates is constructing a second pipeline to the Gulf of Oman port of Fujairah, which will double the country’s non-Hormuz export capacity by 2027. OPEC’s second-largest producer Iraq, meanwhile, signed a deal with Syria in July to rehabilitate an existing pipeline connecting Iraq’s northern oil fields to Syria’s Mediterranean coast, a project first revealed by Middle East Eye that has received backing from the U.S. government.

Saudi Aramco is far from the only energy major to profit from the ongoing conflict: U.S. oil giants ExxonMobil and Chevron also reported blockbuster second-quarter earnings. ExxonMobil’s profits doubled compared to the same period last year, while Chevron posted the highest quarterly profit in its 145-year history.

The record profits have sparked political backlash in the U.S., where former President and presumptive Republican presidential nominee Donald Trump is facing growing public anger over elevated retail gasoline prices amid his administration’s handling of the Iran conflict. Speaking to reporters Monday, Trump called out the two companies for excessive profiteering and demanded they pass savings to consumers. “Chevron: too much money. ExxonMobil: too much money,” Trump said. “They’re going to give some of that back to the public and they better cut the retail price, the consumer price.”

Crude prices have retreated roughly 8% since Sunday, falling to $79 per barrel, after Trump walked back a recent threat to launch what he described as the “biggest bombing campaign since World War II” against Iran. On Tuesday, U.S. Treasury Secretary Scott Bessent confirmed that peace talks are progressing, telling reporters that the U.S. and Iran are close to reaching a comprehensive deal to end hostilities and fully reopen the Strait of Hormuz to commercial shipping.

Australian budget air carrier Jetstar has ignited fierce and split debate across social media after unveiling a major overhaul of its cabin baggage policy, which introduces paid access to overhead locker storage starting in February. The airline is scrapping its existing 7kg free carry-on allowance, replacing it with a structure where all passengers can bring one small personal item that fits under the seat in front of them free of charge. Travelers wishing to stow a larger bag in the plane’s overhead compartments will need to pay a separate fee for that space, alongside receiving priority boarding if they opt for the upgrade.

In official statements, Jetstar frames the overhaul as a response to extensive customer and crew feedback, noting the new framework aligns with similar policies already rolled out by other leading low-cost carriers across Europe, including EasyJet and Ryanair. The company says common pain points of the current boarding process—long delays from gate bag weighing, and constant fights for limited overhead locker space—have driven the change. Jetstar CEO Stephanie Tully explained the adjustments are designed to better utilize available overhead storage, speed up boarding workflows, and ultimately boost the share of flights that depart on schedule. Under the new rules, routine gate bag weighing will be eliminated, though the airline requests that paid overhead bags stay under 10kg to ensure passengers can lift them safely into storage.

Fees for overhead locker space vary based on route length and demand, the airline confirms. For short domestic hops, such as between Launceston and Sydney, pricing starts at A$25 ($18 USD, £13 GBP). On longer international routes, fees climb higher: a Cairns to Tokyo flight carries a A$52 fee, while the BBC found a one-way overhead bag fee of $60 AUD for a Sydney to Osaka service. A Jetstar spokesperson told the BBC that the published rates are only representative examples, and final pricing can shift upwards based on passenger demand, meaning no fixed fee can be guaranteed to travelers.

Public reaction to the policy change has been sharply divided, with the debate quickly gaining traction across Australian social media platforms. Many frequent fliers have expressed outrage at the new fee, with some critics joking that next the airline will introduce charges for basic amenities like restroom access. Multiple users pointed out that carriers already charge separately for seats, in-flight food and drinks, and checked bags, questioning why carry-on access now requires an extra fee. Others noted the new policy contradicts airlines’ longstanding push for passengers to travel with only carry-on luggage to cut airport operational costs.

However, a significant contingent of travelers has come out in support of the change, arguing it solves a longstanding problem of overcrowded overhead bins. Many passengers shared frustrations that oversize bags carried by other travelers often leave no space for small personal items like jackets or purses. Some noted that selfish overpacking by a small group of passengers has created the issue for everyone, saying the new pricing structure is a logical solution to discourage excessive carry-on luggage. This split response reflects broader tensions in the low-cost air travel sector, where carriers continue to unbundle services to keep base ticket fares low, shifting more costs directly to travelers who use extra amenities.