Asia Pacific News
LAST UPDATE: October 18, 2025
Tariff rollercoaster prompts Chinese exporters to ‘give up’ on US
Faced with erratic U.S. tariffs, many Chinese exporters are scaling back efforts in the U.S. market and redirecting sales toward Europe, Latin America, the Middle East and Africa.
Insight
The instability in U.S. trade policy is driving a structural shift in Chinese export strategies, likely weakening bilateral trade ties if the trend persists.
BOJ’s Ueda Keeps Door Open for Rate Hike as Decision Nears
BOJ Governor Kazuo Ueda indicated that the central bank remains open to further rate hikes depending on economic confidence and outlooks.
Insight
His cautious stance highlights the BOJ’s balancing act between containing inflation and not derailing growth in a fragile global environment.
BOJ to keep raising rates if economy moves in line with forecasts, deputy governor says
Deputy Governor Shinichi Uchida stated that the BOJ will continue to raise rates if economic and price trends align with its forecast.
Insight
This signals a commitment to data-driven tightening, making markets watchful of upcoming inflation and growth releases.
Japan’s parliament agrees on next PM vote on Tuesday
Japan’s lower house has scheduled a vote on October 21 to choose the next prime minister.
Insight
The timing underscores the urgency of coalition-building and the fragility of Japan’s political situation.
ANALYSIS-Japan’s fractured politics could ensnarl Takaichi’s economic plans
Sanae Takaichi faces obstacles as a fragmented parliament and coalition uncertainty may constrain her policy agenda.
Insight
Political instability may blunt the impact of her economic vision, increasing risks of policy paralysis.
Korea, US Yet to Agree on FX Issues Tied to $350 Billion Fund
South Korea and the U.S. remain at odds over foreign exchange provisions related to the $350 billion investment pledge.
Insight
The FX dispute could complicate investment flows and introduce risks of currency volatility in bilateral relations.
Vietnam to cut income tax to spur consumption, state media reports
Vietnam plans to raise the tax-free income threshold and increase deductions for dependents to stimulate consumer demand.
Insight
The move reflects a broader strategy of transitioning from export-led growth toward domestic demand to sustain economic momentum.
Thailand to speed up $9.2 bln investment projects over next four months, official says
Thailand aims to fast-track 300 billion baht (USD ≈ 9.2 billion) in infrastructure and industrial projects in the coming months.
Insight
The acceleration is intended to counter sluggish growth, attract investment, and stabilize the economy amid external headwinds.
Malaysia’s Growth Beats All Estimates Despite Trump Tariffs
Malaysia’s Q3 growth surged 5.2 % YoY, outpacing forecasts, driven by strong domestic demand and resilient exports despite U.S. tariff pressures.
Insight
Growth momentum suggests that Malaysia’s economy is less vulnerable to U.S. tariff shocks than expected, at least in the short term.
Singapore’s Exports Rebound After Months of Decline
Singapore’s non-oil domestic exports jumped 6.9 % in September, rebounding from earlier declines, led by electronics shipments.
Insight
The rebound shows resilience in Singapore’s trade sector, but sustained strength may depend on external demand and tariff dynamics.
