Asia Pacific News
LAST UPDATE: June 10, 2025
Japan’s Ishiba Pledges 50% Pay Rise by 2040 Ahead of Elections
Prime Minister Shigeru Ishiba pledged a 50% wage increase by 2040 and targeted leading a ¥1 quadrillion ($6.9 trillion) economy as part of his Upper House election platform.
Insight
Ishiba’s bold commitment underscores his strategy to boost consumer sentiment and secure electoral support by promising wages that outpace inflation. However, implementing such a sweeping economic overhaul requires enduring cross-party cooperation and favorable macroeconomic conditions, which may constrain how much is politically and economically achievable by 2040. (bloomberg.com)
BOJ vows to keep raising rates if underlying inflation accelerates
Bank of Japan Governor Kazuo Ueda told Parliament on June 10 that the central bank is prepared to continue raising interest rates beyond the current 0.5% benchmark if core, demand-driven inflation approaches the 2% target.
Insight
Ueda’s remarks signal a cautious yet decisive shift—monetary policy tightening depends on sustained core inflation gains, not transient spikes. This approach offers flexibility to act if wage pressure and domestically driven price rises persist, while also accounting for economic uncertainty from global trade tensions.
South Korea appoints ex-trade chief Yeo Han-koo as new trade minister
On June 10, President Lee Jae-myung appointed former trade envoy Yeo Han-koo as the new trade minister to lead talks in Washington aimed at lifting the 25% U.S. tariff imposed earlier this year.
Insight
Yeo’s return reflects Seoul’s urgency to resolve tariff pressures affecting key industrial exports. His experience under previous administrations could strengthen dialogue with U.S. counterparts, but success hinges on navigating nuanced trade diplomacy amid geopolitical and domestic political factors.
Xi Urges South Korea’s Lee to Help Safeguard Free Trade
In a phone call on June 10, Chinese President Xi Jinping urged South Korea’s President Lee Jae-myung to cooperate in protecting multilateralism and free trade amid global trade uncertainty.
Insight
Xi’s appeal underscores an alignment of economic priorities as both nations seek stability amid rising protectionism. It reflects China’s strategy to reinforce regional trade collaboration and hedge against disruption, while testing South Korea’s diplomatic balancing act between the U.S. and China.
Xi Tightens Leash on Officials’ Boozing and Lavish Living — WSJ
DJ (via WSJ)
China’s leader Xi Jinping has updated anti-corruption rules to prohibit extravagant official behavior—such as drinking alcohol, serving gourmet foods, cigars, flowers, or elaborate décor at government functions.
Insight
The stricter frugality rules signal Xi’s intent to reinforce party discipline, curb corruption, and consolidate power. They aim to curb elite excesses and increase public trust, but also serve to assert his personal authority throughout the bureaucracy—sending a message of austerity amid persisting expectations of stability.
Australia has stabilising role amid rising global division, says PM Albanese
Australia will seek to disprove the “corrosive” idea that democratic institutions are failing amid significant global uncertainty, and play a stabilising role in the region, Prime Minister Anthony Albanese said on Tuesday.
Insight
Albanese’s speech reflects Australia’s strategic positioning as a middle power seeking to navigate rising global tensions between the US and China. His emphasis on democratic institutions and regional stability comes ahead of his first meeting with President Trump at the G7, where defense spending and trade will be key topics. The Prime Minister’s reluctance to commit to Trump’s request for defense spending increases from 2% to 3.5% of GDP demonstrates Australia’s attempt to maintain sovereignty while balancing alliance obligations. This positioning is particularly significant given Australia’s geographic location in the contested Indo-Pacific region, where it must manage relationships with both its security ally (US) and largest trading partner (China). The timing suggests Australia is preparing for a more complex geopolitical environment under Trump’s second presidency.
