Asia Pacific News
LAST UPDATE: August 28, 2025
ANALYSIS-Asia’s pledge to boost US farm imports may redraw trade flows
Southeast Asian nations have pledged to increase purchases of U.S. agricultural products, potentially reshaping global grain and oilseed trade dynamics.
Insight
Expanding U.S. farm exports to Asia could disrupt traditional trade relationships and reconfigure supply chains.
Kim Jong Un to Join Putin at Xi’s Military Parade in Beijing
Kim Jong Un will attend a military parade in Beijing alongside Xi Jinping and Vladimir Putin, marking his first China visit in years.
Insight
The joint appearance signals strengthening ties among these nations amid diverging global alignments.
Japan’s trade negotiator cancels US visit over tariff deal snag
Japan’s top trade negotiator canceled a planned U.S. visit due to unresolved administrative issues, delaying finalizing a $550B investment-for-tariff relief deal.
Insight
The delay highlights fragility in U.S.–Japan trade coordination and underscores sensitivity over tariff implementation.
BOJ Board Member Reaffirms Stance on Raising Interest Rates
A Bank of Japan board member reaffirmed commitment to further rate hikes if economic conditions allow.
Insight
The statement reinforces the BoJ’s cautious tightening trajectory amid uncertain inflation outlook.
Bank of Korea Holds Rates Amid Concerns Over Housing, Lending
The Bank of Korea maintained its current rate, citing risks from high household debt and housing market overheating.
Insight
The hold signals caution as policymakers balance inflation control against financial stability concerns.
Bank of Korea Sees Tariffs Shaving 0.6 Point Off Growth in 2026
The Bank of Korea projected that U.S. tariffs could reduce South Korea’s GDP growth by 0.6 percentage points in 2026.
Insight
The outlook underscores vulnerability of South Korea’s export-driven model to rising protectionism.
India’s Modi seeks closer ties on Asia tour to offset fallout from US tariffs
PM Modi is touring Asia—Visiting China, Japan, and Russia to deepen economic ties amid U.S. tariffs on Indian exports.
Insight
Indicates a strategic pivot to diversify partnerships and reduce reliance on U.S. markets.
Thai factory output drops more than forecast in July as car production slumps
Thailand’s factory output declined 3.98% year-on-year in July, driven by an 11.4% drop in car production.
Insight
Highlights how trade uncertainties and auto sector weakness are dragging on industrial output.
Malaysia plans to convene RCEP summit in October, report says
Malaysia will host an RCEP summit in October to review progress, accelerate implementation, and assert Asia’s role in trade amid protectionism.
Insight
Demonstrates Asia’s intent to lead on trade liberalization and deepen regional cooperation.
Philippines Cuts Key Rate Again as Inflation Stays Below Target
The central bank lowered its key interest rate as inflation remains below target.
Insight
Continued easing supports growth but reflects the challenge of maintaining price stability.
