Asian Parliament Meeting Sparks Trade Hopes
South Korean and Japanese Parliament leaders unexpectedly held a meeting during the ASEAN summit last Monday. Moreover, the Assistant Secretary for East Asian and Pacific Affairs David Stillwell said the move was an “encouraging sign” on their relationship.
In other words, South Korea proposed a bill for Japan on Wednesday to make amends over wartime victim compensation.
The JPY/KRW currency pair went up to ₩10.6256 as both countries reconsider their General Security of Military Information Agreement. The CNY/KRW pair went up to ₩165.53, while the CNY/JPY pair inched up at ¥15.5708.
The Asian market mixes as different countries rely on trade talks and monetary policy meetings.
China is urging the US to roll back more tariffs for “Phase One.” The USD/CNY pair slid to ¥6.9963.
Japanese Trade Minister Hiroshi Kajiyama said Tokyo would work towards including India into an RCEP deal. The INR/JPY pair sank to ¥1.5352 today.
The Bank of Thailand reduced its benchmark policy rate by 25 basis points to 1.25%. Growth significantly disappointed the BOT’s latest forecast, with inflation undershooting its target.
Meanwhile, the American dollar slipped lower than its safe-haven yen at 108.99. Investors are waiting for China and the US to wrap up their preliminary trade deal.
SK Parliament Calls for Japanese Donations
South Korea’s parliament head called to mend ties with Japan with a donation invitation for Japanese colonial rule survivors. The proposed bill could bridge the gap between the opposing countries, ending their worst war in decades.
The bill would incline Japan and South Korea to provide compensation funds for victims of forced labor and women’s prostitution.
Seoul’s National Assembly Speaker Moon Hee-sang hopes their parliament will craft legislation providing a point of compromise. He said the bill could open the way for mutual understanding and cooperation.
The parliament proposal’s effectiveness remains uncertain, as the wartime victims expect proper compensation and apologies from Japan.
South Korea’s President Moon Jae-in said Japan is an “important partner for peace and stability in Northeast Asia.” He claims the parliament would need to provide a comprehensive solution that could prevent another colonization attempt.