Japan and India sign agreements to boost cooperation in AI, energy and defence

India and Japan have signed a series of agreements to deepen cooperation in defence, economic, and maritime security, and adopted a joint roadmap for economic security.

The leaders also agreed to strengthen cooperation in artificial intelligence, shipbuilding, Biogas, semiconductors, and critical Technologies. Bilateral trade between the two countries reached $27.5Bn in fiscal year 2025/26, while Japanese investment in India was $3.2Bn between April and December 2025, according to Indian government data.

The summit placed the two countries ’ shared Indo-Pacific ambitions at the centre of the agenda. In a joint statement issued after the meeting, the leaders reaffirmed their intention to work towards a free and open Indo-Pacific and to deepen practical cooperation in pursuit of common goals.

The leaders also voiced “ grave concerns ” over the use of economic coercion, language that appeared to allude to China.

The convergence of Japan's precision technology and India's software capabilities will give a new momentum and strength to global AI development, said Indian Prime Minister Narendra Modi after talks with his Japanese counterpart, Sanae Takaichi.

Reference Sources

1. nationthailand - Japan and India expand strategic ties in Modi-Takaichi talks
2. cna - Japan and India sign agreements to boost cooperation in AI, energy and defence
3. apnews - India’s Modi and Japan’s Takaichi expand defense and economic security ties
4. usnews - India, Japan Sign Pacts to Boost Cooperation in AI, Metals, Energy
5. aawsat - India, Japan Sign Pacts on AI, Metals, and Energy after Modi-Takaichi Talks

Vietnam and Philippines raised to upper-middle income status

The World Bank has elevated Vietnam and the Philippines to upper-middle income status after years of brisk economic expansion, potentially bolstering investor confidence in the two nations.

All five of the major South-East Asian economies, including Singapore, Malaysia, and Thailand, are now at the upper-middle income tier and above, according to a release from the World Bank on Wednesday (July 1).

Vietnam had been categorised as lower-middle income since 2009, while the Philippines had been there since the late 1980s, the data showed. The World Bank cited Vietnam’s Export-Led growth model and the Philippines ’ broad-based expansion, "reflecting gains across all major industries, not a single sector boom, but an Economy-Wide shift." The Philippines ’ aspiration for income status upgrade was launched in late 2015 to early 2016, straddling the administrations of the late Benigno Aquino III and Rodrigo Duterte. The World Bank confirmed the status of the Philippines as an Upper-Middle-Income country after its gross national income per capita exceeded the UMIC threshold, the Department of Economy, Planning, and Development (Depdev) announced on Wednesday.

The World Bank, in its latest income assessment in July, reported that the Philippines’ GNI per capita has reached $4,850, exceeding the $4,636 UMIC threshold.

Reference Sources

1. thestarmy - Vietnam and Philippines raised to upper-middle income status
2. rappler - Marcos: Upper middle income status a ‘vote of confidence’ in PHPhilippines reaches upper-middle income status — World BankBea Cupin
3. thestarmy - President Marcos: Philippines’ upper-middle-income status validates economic policies
4. gmanetwork - DEPDev: World Bank confirmed Philippines' upper-middle-income status
5. philstar - Philippines lifted to upper-middle income status

South Korea embraces 24-hour won trading in break with currency 'trauma'

South Korea's largest lenders are boosting trading desks in London and Seoul to prepare for the won's round-the-clock trading starting next week.

Woori Bank has dispatched eight staff to its London office, including five traders in its foreign-exchange, derivatives, and bond desks. Ahead of securing UK regulatory approval in May, Hana Bank has added three dealers in Seoul and introduced a three-shift rotation to provide 24-hour market coverage. Shinhan Bank and KB Kookmin Bank are also expanding Headcount and upgrading systems. From July 6, the dollar-won spot market will trade continuously from 6 a.m. Monday to 6 a.m. Saturday during New York daylight savings time, from the current 9 a.m. to 2 a.m. schedule.

The change, intended to make the won a more international currency, represents a big step for a market that was still "traumatized" by past currency crises, according to a South Korean economic official in 2023. Global investors' interest in South Korea's economy and capital markets has "clearly changed" for the better in recent years, the country's top Finance Ministry official said, as the won prepares to shift to round-the-clock trading on July 6.

Reference Sources

1. bloomberg - South Korean Banks Expand Trading Floors for 24-Hour Won Market
2. nikkei - South Korea embraces 24-hour won trading in break with currency 'trauma'
3. bloomberg - Global Appetite for Korea Grows Ahead of 24-Hour Won Trading
4. bloomberg - South Korea Opens 24-Hour Won Trading at a Fraught Moment

The CommonWealth English daily news digest is a service curated by CommonWealth English team with the help of AI tools.

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