Vladimir Putin arrives in North Korea for first visit in 24 years

Good morning. In today’s newsletter we’re covering:

• A ship collision in the South China Sea

• An exclusive interview with India’s opposition leader

• Entrepreneur Pierre Chen’s Taipei apartment

We start, however, with Vladimir Putin’s first visit to North Korea in 24 years amid Russia’s burgeoning ties with Kim Jong Un’s regime.

The North Korean leader met Russia’s president at the airport earlier this morning for the start of a two-day visit, according to state television footage. Putin and Kim are expected to sign a new strategic partnership agreement during the trip, the Kremlin has said.

In an article published in North Korean state newspaper Rodong Sinmun ahead of his arrival, Putin said Moscow would seek to work closely with Pyongyang to resist western pressure over Russia’s invasion of Ukraine and North Korea’s nuclear and ballistic missile programme.

North Korea yesterday reaffirmed its support for Russia’s invasion, which Kim has called a “sacred war”.

Putin’s visit comes as concerns grow in the west about deepening trade and military co-operation between Moscow and Pyongyang. Read more on the agreement the two countries are expected to sign.

Here’s what else I’m keeping tabs on today:

• Monetary policy: The Bank of Japan releases minutes from its latest monetary policy meeting.

• China-Malaysia relations: Chinese Premier Li Qiang is visiting Malaysia as Prime Minister Anwar Ibrahim pushes for closer ties with Beijing. But many in Kuala Lumpur are wanting more from the government’s China pivot.

• China-Tibet dispute: A group of US lawmakers arrived in India yesterday to meet the Dalai Lama, Tibet’s spiritual leader, in a visit likely to upset Beijing. (Reuters)

Five more top stories

1. A Filipino sailor sustained a “severe injury” after the Chinese coastguard intentionally rammed a Philippines vessel in the disputed South China Sea, the country’s military has said. The incident is the latest confrontation between the two countries amid mounting tensions over contested waters in the South China Sea.

2. UBS chief executive Sergio Ermotti has warned that Switzerland risks being overtaken by Hong Kong as the world’s wealth management hub if policymakers overreact to the fall of Credit Suisse. During a speech yesterday, Ermotti displayed a slide that showed Hong Kong’s wealth management sector set to overtake Switzerland by 2027, while Singapore was on course to be in third place.

3. Nvidia has leapfrogged Microsoft and Apple to become the most valuable company in the world. The US chipmaker’s market capitalisation hit $3.335tn yesterday — a landmark moment following months of explosive share price growth driven by demand for its chips and an investor frenzy over artificial intelligence.

4. Toyota chair Akio Toyoda was re-elected by shareholders yesterday amid concerns about governance issues at the world’s largest carmaker. But Toyoda was forced to defend himself after proxy advisers recommended a vote against him over vehicle testing and emissions data issues at group subsidiaries.

5. The Israeli military said yesterday that senior officers had approved “operational plans for an offensive in Lebanon”. The announcement came amid fears of an all-out conflict between Israel and Hizbollah, with the US leading a diplomatic push to de-escalate the situation.

The Indian political landscape has undergone a “tectonic shift” after this month’s unexpected election result and Prime Minister Narendra Modi’s government will “struggle” to survive, Rahul Gandhi, the country’s most prominent opposition politician, has claimed in an exclusive interview with the FT.

We’re also reading and listening to . . . 

• The bullish case for TSMC: Shares of the Taiwanese semiconductor giant still lag behind Nvidia and other chipmakers. But there are growth opportunities in the coming quarters, writes June Yoon.

• 🎧 Tech Tonic: China is pushing the frontiers of scientific research, launching missions to the Moon and exploring the remotest places on Earth as part of its grand plan to become a tech superpower.

• At home with Pierre Chen: The Taiwanese tech entrepreneur shows off his art and wine-filled Taipei apartment, and discusses holding firm in the face of threats from China.

Chart of the day

Shein has been diversifying away from fast fashion and trying to improve customer loyalty ahead of a planned listing in London. New research shows Gen Z shoppers — who powered the Chinese-founded start-up’s explosion on to the fashion scene during the pandemic — were using Shein less at the start of the year.

Take a break from the news

A new wave of luxury hotels is offering visitors to Tokyo wow-factor futurism as well as quiet contemporary luxe. FT Globetrotter has visited the best of the city’s new generation of high-end accommodation.

Additional contributions from Irwin Cruz and Gordon Smith