Asia Pacific News
LAST UPDATE: September 1, 2025
Xi Vows More Investments to Boost China-Led Security Bloc
Xi Jinping pledged increased loans and investments to strengthen the Shanghai Cooperation Organisation, a China- and Russia-led security bloc.
Insight
The move underscores China’s ambition to consolidate regional influence and counterbalance Western alliances.
Xi Jinping and Narendra Modi ‘partners not rivals’ as leaders seek to repair China-India ties
Xi and Modi reaffirmed that their nations are “partners, not rivals” during talks, signaling efforts to ease tensions and highlight shared development goals.
Insight
This signals a potential thaw in relations, crucial for regional stability and trade amid broader geopolitical rivalries.
China manufacturing activity shrinks for fifth straight month in August
Official data showed China’s factory activity contracted for a fifth consecutive month in August, with PMI at 49.4.
Insight
Persistent weakness highlights structural economic challenges despite stimulus, raising concerns about China’s growth outlook.
India’s factory growth hits more than 17-year high in August, PMI shows
India’s factory activity surged in August, with PMI reaching 59.3, the strongest in over 17 years.
Insight
Strong domestic demand and restocking point to India’s growing role as a global manufacturing hub.
South Korea’s Export Growth Slowed in August
South Korea’s exports grew only 1.3% in August, below forecasts, due to weaker demand and trade tensions.
Insight
The slowdown underscores Korea’s vulnerability to U.S. tariffs and global trade headwinds.
Southeast Asia’s Factories Power Ahead as Japan, Korea Cool
Southeast Asian manufacturing expanded strongly, while Japan and Korea showed weakening momentum.
Insight
The divergence highlights Southeast Asia’s rising competitiveness as trade shifts reshape supply chains.
Indonesian government says economic fundamentals are solid despite extended protests
The government insisted fundamentals remain strong despite unrest, pledging support measures to calm markets.
Insight
Authorities aim to reassure investors, but ongoing protests could undermine confidence and stability.
Thousands protest in Indonesia as military deployed in capital
Thousands of protesters gathered in Jakarta and other cities, leading to military deployment in the capital.
Insight
The unrest reflects widespread public anger toward government policies and presents a serious challenge to stability.
Indonesian Stock, Bond Selloff Extends After Weekend of Unrest
Indonesian stocks and bonds continued to fall following prolonged unrest over the weekend.
Insight
Political instability is spilling into financial markets, undermining investor confidence.
China’s Xi Offers Backing for Myanmar’s SCO Membership Bid
Xi Jinping voiced support for Myanmar’s full membership bid in the Shanghai Cooperation Organisation.
Insight
China’s endorsement of Myanmar’s SCO membership strengthens its regional influence.
Australian Manufacturing Activity Strongest Since Mid-2022
Australia’s manufacturing PMI reached 53.0 in August, marking the strongest level since mid-2022.
Insight
The surge suggests robust recovery driven by domestic demand and improving exports.
New Zealand to Appoint New RBNZ Governor Within Weeks, PM Says
The Prime Minister announced that a new Reserve Bank governor will be appointed within weeks.
Insight
Timely appointment is crucial for maintaining monetary stability during leadership change.
