Asia Pacific News
LAST UPDATE: October 2, 2025
BOJ deputy governor offers upbeat view on business mood, profits
BOJ Deputy Governor Shinichi Uchida expressed optimism about improving business sentiment and solid corporate profits. Despite U.S. tariff impacts, he said the economy remains on track and additional rate hikes could be considered if conditions hold.
Insight
Japan’s central bank signals cautious but possible further tightening, keeping markets focused on the next policy meeting.
Seoul Likely to Unveil Security Pact With US Before Trade Deal
South Korea is expected to announce a security agreement with the U.S. ahead of any trade deal. Officials indicated defense talks take precedence over trade negotiations.
Insight
Prioritizing defense highlights Seoul’s strategic focus on security amid tough trade talks, reinforcing the U.S.-Korea alliance.
S. Korea Inflation Picks Up After One-Off Telecom Fee Cuts End
South Korea’s inflation rose again after temporary telecom fee cuts ended. Rising food prices also contributed to the faster pace of inflation.
Insight
The rebound in inflation reveals underlying pressures, which may influence the central bank’s monetary policy direction.
Indonesia’s Central Bank Faces Growing Threats to Independence
Indonesia’s central bank faces rising threats to its independence as government and parliament seek greater influence. Analysts warn this could undermine policy credibility.
Insight
Investor confidence hinges on the bank’s autonomy, making its ability to resist political pressures a critical test.
Indonesia’s Danantara to deploy $10 bln in first three months, eyes global push, CIO says
Indonesia’s new sovereign wealth fund, Danantara, plans to deploy $10 billion within its first three months, focusing on domestic projects while eyeing international expansion.
Insight
The fund’s aggressive start signals a drive to boost national assets and global presence, but risk management will be vital.
Thailand should prepare measures amid U.S. shutdown concerns, official says
A Thai deputy finance minister said the country should prepare measures to mitigate risks from a potential U.S. government shutdown, including currency and export impacts.
Insight
Thailand’s response underscores how U.S. fiscal uncertainty can ripple through emerging markets, highlighting regional vulnerabilities.
Philippine Corruption Scandal Darkens Outlook for One of Asia’s Growth Stars
A widening corruption scandal over flood-control allocations has sparked mass protests and shaken investor confidence, clouding a previously bright growth outlook. (ブルームバーグ)
Insight
The scandal compounds external headwinds—such as higher U.S. tariffs—and may force growth and credit forecasts downward.
Philippine quake death toll rises to 72
A 6.9 magnitude quake off central Philippines has left at least 72 dead and nearly 300 injured, causing widespread damage to infrastructure in Cebu. (AP News)
Insight
The disaster strains emergency response capacity and will weigh on fiscal and reconstruction needs in the region.
