Hello from Tokyo. The World Cup is delivering thrilling matches, with Japan and Australia the first teams from the Asian Football Confederation to secure their places in the round of 32. In the Nikkei Asia newsroom, we pushed back the start of our morning conference today to catch the result of Samurai Blue’s game against Sweden.

Japanese soccer has come on in leaps and bounds since the nation’s first professional league kicked off in 1993. Until then, professional sports in the country had largely meant baseball, but with the birth of the J.League, the overall level of homegrown players rose and more began moving overseas to leagues such as Italy’s Serie A. The national team has qualified for eight consecutive World Cups from 1998, and most of the current squad play for top clubs in Europe.

Ironically, while Japan’s football team has been raising its profile at the World Cup, the presence of Japanese companies at the tournament has been declining. In the past, names such as Fujifilm, Canon, Sony and Toshiba were regular World Cup sponsors. This year, Japanese brands are nowhere to be seen.

Taking their place are Chinese companies. During Japan’s matches, pitch-side advertising featured brands such as Regza. Originally a Toshiba TV brand, Regza was acquired by China’s Hisense in 2018. Lenovo Group is also supporting the tournament as a technology partner. While China’s national team did not qualify for the World Cup, the strong presence of Chinese companies throughout the host stadiums arguably makes them one of the big winners of this year’s event.

These aggressive marketing campaigns seem to be paying off, particularly in Southeast Asia. According to Nikkei Asia analysis, Chinese TV brands have gained significant market share in the region. They are also making notable inroads in air conditioners, a category long dominated by Japanese manufacturers. Chinese brands are also leading in segments such as robot vacuum cleaners.

Among Asian companies outside China, South Korea’s Hyundai Motor stands out at this World Cup. Nikkei Asia has created a special section for the tournament on our website, and I hope you’ll enjoy reading along as the action heats up.

My suggested reads

1. On President Donald Trump’s watch in the White House, Washington has waged an intensifying campaign pressing NATO allies to spend more on defense. Last month, U.S. Defense Secretary Pete Hegseth told allies in the bluntest of terms that they must lift military outlays to 3.5% of gross domestic product. But the push raises tough questions for U.S. allies in Asia. Can they afford it mathematically, and are they willing to make the political sacrifices needed to achieve that level?

2. China’s tightest-yet rules on cross-border investments are rippling through Hong Kong’s financial and property sectors, putting the territory’s status as the world’s largest cross-border wealth hub at risk. The crackdown has targeted brokers but financial institutions are concerned it could soon spread to broader business. Stocks in insurers, banks and real estate companies have been roiled by volatility.

3. Australia’s roughly 270,000 working dogs are getting some high-tech help in their herding duties as startup SkyKelpie brings drones and AI to the country’s pastures. This is just one example of how farmers Down Under are increasingly embracing technology to boost productivity in the face of labor shortages and rising costs.

Wishing you a wonderful weekend!

Akito Tanaka

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