Asia Pacific News
LAST UPDATE: October 6, 2025
China Hawks Grow Queasy Over Trump’s Push for Deals With Beijing
Some hawkish U.S. policymakers are uneasy about Trump pursuing deals with Beijing, worrying that gains could strengthen Chinese firms and reduce U.S. leverage.
Insight
The tension shows how even overtures to diplomacy provoke pushback in Washington’s strategic circles.
Japan’s Takaichi Set to Tackle Ruling Party Unity With Key Posts
As Sanae Takaichi becomes leader of Japan’s ruling party, she is expected to assign key posts to heal internal divisions and shore up support.
Insight
The appointments will be closely watched, as they may signal the ideological balance of her upcoming government.
EXPLAINER-Next steps to confirm Takaichi as Japan’s new prime minister
After being elected LDP leader, Takaichi must be formally confirmed by the Diet through votes in both houses, then appointed by the emperor.
Insight
The process underscores the continuing importance of parliamentary procedure even when one party dominates.
Takaichi could tolerate another BOJ rate hike by January, economic adviser says
Takaichi’s adviser indicates she may accept a ~25 basis point BOJ rate increase by January 2026 if the broader monetary stance remains loose.
Insight
It signals a willingness to balance stimulus with monetary discipline, rather than blanket opposition to tightening.
BOJ keeps cautiously upbeat economic view, warns of wage uncertainty
The Bank of Japan maintained a cautiously optimistic outlook on the economy, but flagged uncertainties about future wage growth.
Insight
Wage growth remains a central pivot for whether further rate hikes are credible in Japan.
India’s services growth eases in September as demand cools, PMI shows
India’s services PMI slipped in September, reflecting softer external demand, although overall expansion persisted.
Insight
The moderation suggests export headwinds may dampen India’s previously strong services momentum.
Vietnam Posts Fastest Growth Since 2022 as Factories Rev Up
Vietnam’s growth is accelerating again, fueled largely by an industrial rebound and export momentum.
Insight
The trend reinforces Vietnam’s role as a manufacturing alternative to China amid shifting global supply chains.
Thai inflation negative for six straight months as full year forecast lowers
Thailand’s annual headline inflation remained negative for the sixth consecutive month in September, driven mainly by lower energy prices.
Insight
Persistent deflation pressure may push the central bank toward further rate cuts and stimulate fiscal intervention.
