Asia Pacific News
LAST UPDATE: October 14, 2025
Chinese Exports Surge, Giving Xi Stronger Hand in Trade Fight
China’s September exports beat expectations, signaling resilience despite heightened trade tensions. The jump strengthens Beijing’s leverage in ongoing tariff and tech disputes. Markets read the data as a sign China can better withstand external pressure.
Insight
Stronger shipments give Beijing negotiating cover and may temper the urgency for domestic stimulus, while complicating U.S. efforts to extract concessions.
China’s rare earth exports fall sharply in September
China’s rare earth exports fell about 31% from August, marking a third straight monthly decline. The drop came just after Beijing expanded controls on rare earths. Year-to-date exports were still higher than a year earlier.
Insight
The sharp monthly fall underscores how export controls can be used as strategic leverage, raising supply-chain risks for defense and electronics globally.
China’s Soy Imports Hit September Record, Despite Avoiding US
China imported a record amount of soybeans in September, relying mostly on Brazil and other suppliers. Purchases avoided U.S. cargoes amid strained relations. The surge reflects strong feed demand and price dynamics.
Insight
Beijing’s diversification away from U.S. soy reduces Washington’s leverage while reinforcing Brazil’s role in China’s food security.
Korea Says US Offered Alternative in $350 Billion Deal Talks
Seoul says Washington proposed an alternative structure for a $350 billion investment package tied to trade talks. The U.S. reportedly eased insistence on full direct investment. Discussions continue this week in Washington.
Insight
A compromise structure could unblock a politically sensitive deal and stabilize FX and industrial policy planning in Seoul.
India Says Trade Team to Visit US This Week as Talks Progress
India will send a delegation to the U.S. this week as negotiations advance toward a bilateral trade agreement. Officials said talks are on track toward a fall timeline. The visit aims to resolve remaining sticking points.
Insight
Momentum suggests both sides want a deal to offset broader trade frictions; market access and tariff paths will be key watch items.
Indonesian lawmakers get allowance hike after protests against perks
Indonesia nearly doubled a key “recess allowance” for lawmakers shortly after cutting other benefits amid protests. Officials said the increase reflects higher costs. Public backlash over political perks remains intense.
Insight
The timing risks reigniting anger over elite privileges and could test the government’s credibility on fiscal restraint.
New Zealand Services Sector Contraction Remains Severe
New Zealand’s services sector stayed deep in contraction in September, with firms curbing hiring. Persistent weakness signals sluggish domestic demand. Policy easing hopes may rise if the downturn persists.
Insight
Prolonged services weakness threatens broader growth and could accelerate calls for rate cuts despite inflation risks.
Japan Opposition Parties Consider Unifying Behind PM Candidate
Japan’s major opposition parties are discussing merging efforts behind a single candidate to challenge the ruling LDP’s choice for prime minister.
Insight
A united opposition slate could shake Japan’s entrenched political order, especially in a parliament vote.
Japan finance minister calls for post-Abenomics policies for inflation era
Japan’s finance minister urged a shift from Abenomics-style policies toward frameworks better suited for a higher inflation environment.
Insight
The shift signals acknowledgment that past monetary and fiscal tools may not suffice under new price dynamics.
US not insisting South Korea invest all of $350 bln investments in cash, Seoul says
South Korean officials said the U.S. is not demanding that the planned $350 billion investment package must be fully cash-funded.
Insight
The clarification eases tensions, allowing more flexible structures — e.g., in-kind contributions or financing arrangements.
Trump ‘looking forward’ to Thailand-Cambodia ceasefire deal at ASEAN summit, Malaysia says
Malaysia’s foreign ministry said Trump expressed hope for a Thailand-Cambodia ceasefire agreement at the upcoming ASEAN summit.
Insight
Trump’s involvement signals continued U.S. engagement in regional conflict resolution as part of his diplomatic agenda.
Thailand’s below-target inflation rate not an obstacle to growth, central bank says
Thai central bank officials said that inflation running below target won’t deter further economic expansion, citing strong demand.
Insight
The stance reflects a balancing act: sustaining growth without triggering runaway inflation.
Singapore Holds Monetary Policy Steady Amid Resilient Growth
Singapore’s central bank maintained its exchange rate-based policy unchanged as economic growth remained strong.
Insight
The decision shows confidence in continuing growth and a desire to avoid destabilizing markets amid external uncertainties.
