Asia Pacific News
LAST UPDATE: June 14, 2025
Indonesia Scraps Plan to Send Delegation to US for Tariff Talks
Indonesia confirmed it will no longer dispatch a delegation to Washington for tariff negotiations, saying its written proposal alone suffices (bloomberg.com).
Insight
This reflects Jakarta’s confidence in its position and a streamlined, cost-conscious diplomatic approach. It may also signal flexibility in negotiation modes amid rising US-ASEAN trade tensions.
India, China Tackle Rare Earth Curbs in Meeting of Top Officials
Senior Indian and Chinese officials met in New Delhi to discuss easing China’s export restrictions on rare earths to stabilize supply-chain pressures .
Insight
Despite broader geopolitical friction, this cooperation on critical minerals underscores both nations’ recognition of supply chain interdependence in strategic sectors like EVs and electronics.
India, US Harden Trade Stance as July Tariff Deadline Nears
Ahead of a July 9 tariff “pause” deadline, India and the US have taken tougher positions on GM crops, steel, autos, pharmaceuticals, and data governance .
Insight
The hardened stances reveal deep-seated trade friction. With key sectors at stake, both sides appear entrenched, raising the risk that a broad interim deal may not materialize.
Rupee Slides on Israel‑Iran Conflict; Central Bank Likely Intervenes
The Indian rupee dropped to a two-month low (~₹86.20/USD) after oil-price increases linked to Middle East tensions. The RBI reportedly sold dollars through state banks to stabilize the currency .
Insight
This underscores India’s vulnerability to external shocks, particularly oil-price volatility. While RBI’s intervention temporarily stabilized the rupee, persistent geopolitical risk could amplify inflation and external funding pressures.
China’s Loan Expansion Fell Short of Expectations in May
Chinese banks extended RMB 620 billion in new loans in May, up from April’s low but still well below analyst expectations of RMB 850 billion. Although credit growth recovered marginally from April’s trough, demand remained weak amid ongoing trade jitters (morningstar.com, reuters.com).
Insight
The muted credit uptake underscores soft private-sector sentiment, even with policy support measures. It suggests that real demand is lagging monetary stimulus, hinting at potential risks to future growth momentum.
South Korea’s Lee pledges support on trade issues in meet with top conglomerates
President Lee Jae‑myung convened heads of major conglomerates like Samsung and Hyundai, promising regulatory easing and accelerated U.S. tariff negotiations to alleviate competitive pressures. The private sector flagged uncertainty over U.S. tariffs affecting investment decisions .
Insight
Lee’s intervention signals an active economic diplomacy aimed at bolstering export competitiveness. It reflects Seoul’s strategy of close public-private coordination to cushion trade-related shocks.
China c.bank plans second cash injection via outright reverse repos in June
The People’s Bank of China plans to inject RMB 400 billion (~USD 55.7 billion) via six-month reverse repos on June 16. This will be the second such liquidity operation this month, following a RMB 1 trillion three-month repo earlier aimed at alleviating summer bond-market funding pressure .
Insight
The moves reflect a calibrated liquidity strategy: ensuring ample cash for bond issuance while preventing market overheating. It shows the PBOC’s balancing act between supporting growth and averting asset bubbles.
Bangladesh interim government head signals possible early election
Interim Chief Adviser Muhammad Yunus said parliamentary elections may be held in February 2026, moving up from the previously planned April. The decision hinges on satisfactory progress in political and judicial reforms following talks with opposition BNP .
Insight
Step‑forward timing reflects a push to restore democratic stability while managing reform mandates. Coordinating electoral timelines with judicial and institutional credibility aims to build legitimacy for the election process.
Japan’s Kato Says Talks With Markets Key for Bond Issuance
Finance Minister Katsunobu Kato emphasized proactive dialogue with investors is essential to secure stable demand for Japanese government bonds as the BOJ reduces quantitative easing. A meeting with primary dealers is scheduled for June 20 to address long‑term yield volatility .
Insight
With the BOJ tapering bond purchases, the government must manage fiscal funding delicately. Kato’s approach suggests increasing reliance on market engagement to maintain orderly bond markets and fiscal sustainability.
Japan PM agrees in call with Trump to ‘accelerate’ trade deal talks
Prime Minister Shigeru Ishiba and President Trump spoke by phone on June 13, agreeing to “accelerate discussions toward a mutually beneficial trade deal” ahead of their planned meeting at the G7 summit in Canada (reuters.com).
Insight
The conversation highlights Japan’s insistence on full tariff rollbacks—including autos, steel, and aluminum—as a prerequisite. Ishiba’s push to speed up ministerial-level consultations signals a high-level commitment to swiftly resolving trade tensions; their meeting at G7 marks a key opportunity to bridge remaining gaps.
Vietnam admitted as BRICS ‘partner country,’ Brazil says
Brazil, currently chairing BRICS, announced Vietnam’s formal admission as a BRICS “partner country”—the tenth such nation—enabling participation in summits and dialogues (reuters.com).
Insight
Vietnam’s BRICS status boosts its international profile, enhances diplomatic ties with BRICS members, and offers a platform for deeper economic collaboration. This diversifies its geopolitical alignments beyond traditional Western partners.
