Chinese industrial profits dropped 9.1 % year‑on‑year in May—the steepest decline since October—due to weak demand, falling prices, deflation and U.S. tariffs. While profits in some equipment sectors rose, auto margins plunged, and broader industrial output, exports and housing prices showed contraction. Government measures like trade‑in programs have been introduced to stimulate demand. (ft.com)

Tokyo’s core CPI slowed to 3.1 % in June from 3.6 % in May, driven by renewed fuel subsidies and water bill cuts, but remained well above the BOJ’s 2 % target. Food inflation spiked—rice prices up ~89 %—and service prices rose 2.1 %. The BOJ, which exited its stimulus and raised rates to 0.5 % in January, is set to review policy on July 30–31 amid high U.S. tariff pressure.

Japan warned that higher U.S. auto tariffs could increase economic stress and pledged readiness to support affected industries. The government signaled it will intervene efficiently to protect automakers, with negotiators preparing to address tariff issues during upcoming US visits.

Following its record-setting €1.4 billion eurobond (with over €19 billion orders) in June, South Korea is considering more international debt issuance in H2 2025 to fund reserves and fiscal needs.

U.S. President Trump suggested a “very big” trade deal with India is possible after finalizing a China trade truce. Talks are underway in Washington ahead of a July deadline on reciprocal tariffs. India has emphasized that any deal must be fair and mutually beneficial with strategic sectors like rare earths on the agenda.

Finance Minister Pichai Chunhavajira said he will travel to the US next week to negotiate trade terms before a moratorium on U.S. tariffs ends in July. Under current arrangements, most Thai exports face a 10% tariff, rising to 36% if no deal is reached. Talks aim to lock in favorable rates and extend the tariff pause. (reuters.com)

The Bank of Thailand has held its key interest rate at 1.75%, labeling the pause a “lifeline” amid global uncertainties. Despite political turmoil and looming U.S. tariffs weighing on sentiment, policymakers noted the decision keeps ammunition available for future rate cuts.

Thailand is on edge as ex-premier Thaksin Shinawatra faces a lese-majeste trial next week amid mounting political division. Protesters plan rallies, and tensions around sovereignty issues threaten tourism and investor confidence.

Vietnam’s legislature approved revisions to the Credit Institutions Law, effective October 15, 2025. The changes codify key provisions from Resolution 42, empowering banks to seize and sell collateral directly, speed up bad debt resolution, and allow zero‑interest lending by the central bank to troubled banks (businesstimes.com.sg, thestar.com.my, vietnamnet.vn).

Vietnam’s lawmakers approved creating two international financial hubs in Ho Chi Minh City and Danang. HCMC will focus on capital and forex markets; Danang on green finance. The initiative aims to attract global investors and improve financial sector efficiency amid increased trade-related uncertainties.

Malaysia’s Second Finance Minister Amir Hamzah Azizan has been appointed Acting Minister of Economy following Rafizi Ramli’s departure. He will lead the review of the 13th Malaysia Plan, due to Parliament on July 31, 2025, aiming to align it with the “Madani” agenda. Cabinet approval was given on June 25. (theedgemalaysia.com, theguardian.com)