Asia Pacific News
LAST UPDATE: August 28, 2025
Tonga’s economy remains highly vulnerable to external shocks, says IMF
The IMF noted Tonga’s economy is growing steadily but is highly exposed to external shocks like natural disasters, trade policy shifts, and reduced concessional financing.
Insight
While recovery continues, Tonga must strengthen resilience and diversify its economic base to buffer against future crises.
India hopeful US will review extra 25% tariff for Russian oil purchases, Indian government source says
India remains optimistic that the U.S. will reconsider the newly imposed 25% tariff, which was introduced as retaliation for India’s continued Russian oil imports.
Insight
The tariffs deepen U.S.-India trade tensions and strain export sectors, but India seeks a diplomatic pathway to ease sanctions.
Japan’s ‘ninja stealth rally’ draws in global investors
Japan’s equity market has surged 34% since early April in a stealth rally, as foreign and domestic investors flock to improved corporate governance and trade dynamics.
Insight
The rally reflects deep structural reforms and renewed global confidence in Japan’s market, marking a shift in capital flows.
IMF official lauds China’s strong economic data, targeted fiscal policies
An IMF representative praised China’s robust H1 economic performance and its targeted fiscal stimulus, prompting an upgraded 2025 growth forecast in the World Economic Outlook.
Insight
The commendation underscores China’s effective policy management and offers a positive outlook amid global economic uncertainty.
Tonga’s economy remains highly vulnerable to external shocks, says IMF
The IMF noted Tonga’s growth, aided by tourism and remittances, nonetheless remains highly vulnerable to disasters and external financing shifts.
Insight
The assessment underlines the structural fragility of small island economies and the need for long-term resilience strategies.
India hopeful US will review extra 25% tariff for Russian oil purchases
India hopes the U.S. will reconsider an additional 25% tariff imposed amid tensions over its purchase of Russian oil; government expected to offer support to exporters.
Insight
Demonstrates India’s attempt to soften trade shock while preserving strategic independence in energy policy.
Japan’s ‘ninja stealth rally’ draws in global investors
Japan’s equity market has risen 34% since April, driven by reforms and renewed investor confidence.
Insight
The rally indicates structural shifts in corporate governance and investor sentiment, marking a breakout from long-term stagnancy.
