🇧🇩 Fuel shock strains Bangladesh reforms

Bangladesh’s government is spending hundreds of millions of US dollars a month to shield consumers from surging energy costs after oil and gas prices jumped following the US-Israel attack on Iran. The crisis has brought power cuts, fuel queues and broader price rises across Bangladesh, with the country importing about 65% of its energy needs last year, according to a South China Morning Post report.

The shock is testing Prime Minister Tarique Rahman’s reform agenda just months after he took office on February 17, pledging sweeping economic and social changes and a path to a US$1 trillion economy within a decade. His administration inherited weakened banks, bad loans and damaged state institutions after Sheikh Hasina’s 2024 ouster, leaving limited fiscal room as inflation rises and growth slows.

The energy burden is complicating efforts to stabilise finances while overhauling key sectors, including labour and financial institutions. It adds external pressure to a government already trying to reset the country’s economic model.

#Bangladesh

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🇯🇵🇰🇷 Asian stocks sink on inflation fears

Asian equities fell sharply on Oct. 15 after a U.S. market sell-off driven by stronger-than-expected inflation data and concern over AI-linked debt. South Korea’s KOSPI dropped 7.6% to 5,554.22, while Japan’s Nikkei closed below 65,000 at 64,425.95; Nikkei Asia reported steep losses in Seoul and Tokyo, with Samsung Electronics down 9.5%, SK Hynix off more than 11.1%, and Kioxia losing 12.3%.

The decline followed overnight losses on Wall Street after September U.S. inflation accelerated from August. Higher yields and borrowing costs are adding pressure to AI infrastructure financing and credit conditions, while the U.S. Nasdaq fell 1.8% and the Philadelphia Semiconductor Sector index dropped more than 4%, reinforcing pressure on Asian tech and semiconductor names.

Selling also spread beyond chipmakers, with Hyundai Motor down 5.7%, indicating broader risk aversion across regional equities. Taiwan’s Taiex fell 3.4% even as TSMC posted a sixth straight quarter of record earnings.

#Japan #SouthKorea #Taiwan

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🇯🇵🇺🇸 Okinawa Accepts Osprey Deployment

Okinawa Gov. Genta Koja said Friday the prefecture accepts the deployment of U.S. MV-22 Osprey aircraft at Futenma air station, reversing the local government's longstanding opposition. Koja, who took office late last month, said the deployment should no longer be retracted after more than a decade of operations and with Japan's Self-Defense Forces also using the aircraft.

Previous Okinawa administrations had opposed the Osprey presence since before its initial deployment in 2012, citing safety concerns linked to accidents in Japan and abroad. Koja also supports relocating the U.S. Marine Corps base from densely populated Ginowan to the coastal Henoko area in Nago, aligning his position on the aircraft with backing for the broader base transfer plan.

The shift removes a long-standing point of prefectural resistance to the Osprey presence in Okinawa. It also brings the governor's stance closer to the existing Japan-U.S. basing framework on the island.

#Japan #UnitedStates

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🇺🇸🇲🇲🇯🇵 US-Myanmar Talks Resume in Tokyo

The US and Myanmar’s military-backed government held another round of secret talks in Tokyo last week, their second meeting in a month, according to people familiar with the matter. Reuters reported the talks were again led by US Assistant Secretary of State for Intelligence and Research Michael Vance and involved more than a dozen US officials.

The engagement follows mid-September talks in Naypyitaw focused on securing the release of an American businessman and shutting down scam centres targeting Americans. The renewed channel marks a shift from Washington’s earlier isolation of Myanmar’s generals after the 2021 coup, while potentially opening space for broader discussions including Myanmar’s heavy rare earth deposits, an issue complicated by conflict, fragmented control and China’s presence.

Japan hosted the latest meeting and said it had been communicating with both sides, though it declined to comment on specific exchanges. The talks indicate continued limited US re-engagement with Myanmar’s rulers despite ongoing pressure over abuses and the civil war.

#US #Myanmar #Japan

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🇮🇩 Indonesia Haze Protests Spread

Protests expanded in Central Kalimantan on Oct 15 as residents demanded stronger action on forest and land fires, tighter penalties for companies linked to the blazes, and more support for affected communities. Indonesia is facing one of its worst fire seasons in years, with Health Ministry data cited by Reuters showing 283,270 respiratory illness cases across seven provinces as of Oct 13, while regional haze has also hit Singapore and Malaysia; officials are still debating a national disaster declaration.

The fires have been intensified by an El Nino-driven drought that left forest and peatland areas highly flammable. The episode has become a cross-border issue: Singapore’s one-hour PM2.5 reading reached 284 micrograms per cubic metre in western areas on Oct 14, and several Malaysian states closed schools because of pollution.

BNPB chief Kristomei Sianturi said the government would assess a disaster declaration but prioritise a fast and effective response first. The protests add domestic pressure as the haze crisis widens beyond Indonesia.

#Indonesia #Singapore #Malaysia

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🇵🇭🇨🇳 Manila Rebukes Chinese Envoy

The Philippines on Oct. 16 criticised China’s ambassador after envoy Jing Quan said Beijing “may easily win” in a confrontation with Manila, though it would not use force. The foreign ministry said the remarks were a poor choice of words and unhelpful, while President Ferdinand Marcos Jr said they sounded like a threat, according to reporting on the exchange in Manila.

The comments followed a question to Jing about the Philippine defence secretary calling China a regional troublemaker. The dispute comes amid repeated confrontations between the two sides over reefs and islands in the South China Sea that Manila says lie within its exclusive economic zone, with bilateral ties already under strain.

China’s embassy said the ambassador had been selectively quoted and described Manila’s reaction as an over-interpretation. Beijing’s foreign ministry said relations were at an extremely sensitive stage and urged the Philippine side to understand China’s position accurately.

#Philippines #China

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🇹🇼🇺🇸 Taiwan Plans Texas Industrial Park

Taiwan plans to raise billions of dollars to develop industrial parks in the United States, with the first project set for Texas to help smaller suppliers establish local production and strengthen AI hardware supply chains. Economy Minister Kuo Jyh-huei said each park could cost $2 billion to $4 billion, while a local industry group will raise the funds, according to a report on the plan.

A person familiar with the matter said Taiwan has already secured a site in Texas, while the economics ministry said details would be announced later. The initiative is aimed at suppliers serving companies such as Nvidia, AMD, Meta and Microsoft, as Taiwanese firms including TSMC, Foxconn and Wistron expand their US manufacturing footprint around semiconductors, servers, packaging substrates and cooling modules.

Taiwan said it will support participating suppliers with loan guarantees and coordination with US local and federal officials on visas and land. The move adds to broader efforts to anchor more of the AI supply chain in the US while keeping Taiwan central to upstream manufacturing.

#Taiwan #USA

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🇨🇳🇹🇭 Pan warns on AI financial risks

People’s Bank of China Governor Pan Gongsheng warned at the G20 finance ministers and central bank governors meeting in Bangkok on Oct. 15 that volatility in some sovereign bond markets and rising correction risks in AI-related asset valuations are increasing financial fragility. He also reiterated that global imbalances should not be addressed through exchange-rate adjustment.

Pan said global imbalances require a broader framework beyond current accounts, with greater focus on financial channels and capital flows as global financial integration deepens. He said exchange rates are shaped by growth, monetary policy, financial markets, geopolitics, and sudden risk events, and do not have a simple linear relationship with current-account positions.

Pan also said the PBOC will continue an appropriately accommodative monetary policy to support stable growth and smooth financial market conditions. China’s finance minister Lan Fo’an separately called for comprehensive, objective, and balanced G20 discussions on major international economic and financial issues.

#China #Thailand

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🇨🇳 Xi Signals Harder Party Purge

Xi Jinping’s January speech to the Central Commission for Discipline Inspection was published by Qiushi on Thursday, weeks before the Communist Party’s October plenum in Beijing. In the text, Xi said the anti-corruption campaign must not pause and pledged to uproot “sick trees”, calling corruption the party’s greatest risk and saying it remains widespread and recurrent.

The publication came less than two weeks before the fifth plenary session of the 20th Central Committee on October 26-29, where senior officials are expected to adopt a document on deepening party self-governance. The meeting is expected to focus on systemic corruption, tighter political oversight, and closing institutional loopholes, while also unfolding alongside work on a broader power reshuffle ahead of next autumn’s party congress.

The anti-corruption drive has already significantly reduced the ranks of the current Central Committee. The timing of Xi’s remarks ties the campaign directly to internal discipline and the next phase of leadership adjustment.

#China

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🇨🇳🇲🇾 BYD Shifts Malaysia Assembly Plan

China’s BYD will use Sime Darby’s Inokom unit to assemble vehicles locally in Malaysia after shelving plans for its own plant. The move keeps BYD in the Malaysia market while meeting local production requirements tied to competitiveness.

The change follows BYD’s decision to abandon a standalone factory plan because of local rules, according to Nikkei Asia. Partnering with a domestic assembler allows the Chinese EV maker to preserve market access and pricing position in a regional auto hub where localization requirements shape investment decisions.

The arrangement gives Sime Darby a larger role in BYD’s Malaysian operations and keeps BYD’s expansion on track without direct plant investment. It also points to a more partnership-led entry model for foreign EV makers facing regulatory constraints.

#China #Malaysia

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🇰🇷🇺🇸 Opposition attacks OPCON handling

South Korea’s main opposition People Power Party on Oct. 16 criticized the government over an apparent Seoul-Washington gap on wartime operational control transfer, after USFK Commander Gen. Xavier Brunson said conditions had changed due to recent North Korean missile launches. During a parliamentary audit, Defense Minister Kang Shin-chul said the transfer requirements remained unchanged and that Seoul had conveyed its concerns to Washington.

The dispute centers on the transfer of wartime OPCON from the United States to South Korea, a long-running alliance issue tied to readiness conditions rather than a fixed timetable. Seoul aims to complete the handover before President Lee Jae Myung’s term ends in 2030, potentially as early as next year, while Washington has shown reservations about accelerating the process for political timing.

The PPP called for the government to halt what it described as a rushed push for transfer and warned that public disagreement with Washington could strain alliance coordination. The issue is likely to remain active as North Korea’s missile and nuclear advances continue to shape the security environment.

#SouthKorea #UnitedStates

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🇰🇷🇴🇲 Seoul Reviews Middle East Mission

South Korea is reviewing a broader military role in the Middle East, with Seoul weighing an expansion of the Cheonghae anti-piracy unit from the Gulf of Aden to the Gulf of Oman, according to a report. The Lee Jae Myung administration also plans to submit a motion to Parliament to extend the unit’s mission beyond its Dec 31, 2026 expiry, while a frigate deployment is under consideration.

The Defence Ministry said no decision has been made on the scope of any extension, but confirmed it is reviewing whether to send a parliamentary motion before the current mandate ends. The Cheonghae unit has operated in the Gulf of Aden since 2009, and the review comes as pirate activity there has risen sharply and as US pressure on Seoul has increased over support for the war in Iran.

The unit currently includes a 4,400-ton-class destroyer, a maritime operations helicopter, up to three rigid-hull inflatable boats and about 300 personnel. Any mandate expansion would extend South Korea’s military presence closer to the Strait of Hormuz.

#SouthKorea #Oman

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🇯🇵 Japan Weighs Defense Tax Option

Japanese government sources said a corporate tax increase may be considered to help fund higher defense spending in Japan. The option emerged in reporting by Kyodo on Oct. 17, with the measure framed as a possible revenue source rather than a confirmed policy decision.

The issue sits within Japan’s broader effort to secure stable financing for its military buildup as defense outlays rise. A corporate tax increase would place part of that burden on the business sector, linking fiscal policy more directly to Tokyo’s long-term security planning.

Any move on corporate tax would likely become a domestic political issue alongside budget and defense debates. The report indicates the funding question remains open.

#Japan

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🇲🇲🇯🇵 Japan Backs Asean on Myanmar

An SCMP opinion piece argues that Japan’s quiet engagement could support Asean’s efforts on Myanmar, as Tokyo expands its mediation capacity and maintains contact with actors in Naypyidaw. Japan’s foreign ministry set up an International Peace Mediation Unit in March, a parliamentary peace mediation group followed in May, and the Sasakawa Peace Foundation opened a Centre for Mediation Support.

The article places these moves in the context of Japan’s longer record in Southeast Asian mediation, including its role in Cambodia talks in 1990. It says Tokyo has remained engaged since Myanmar’s coup through what Yohei Sasakawa calls “silent diplomacy”, including participation in the Oslo Forum’s June round table on Myanmar, Sasakawa’s August visit to Naypyidaw, and a September trip by two Japanese parliamentarians.

The argument is that Japan can reinforce an Asean-led process without taking ownership of it, giving the bloc an additional diplomatic channel as it seeks leverage on Myanmar.

#Myanmar #Japan

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🇰🇵 North Korea Tests AI Torpedo

North Korea said it conducted an underwater test of the Zam-2.0 high-speed precision-guided torpedo on Thursday, with state media saying the system uses AI for target detection and guidance. KCNA said the test confirmed a technical upgrade of the weapon and was overseen by senior defense officials, who described it as a success for the future development of the Navy.

According to KCNA, the test also verified propulsion efficiency and rocket propulsion performance, following more than 180 related trials over the past five years. The system was described as a “super-speed” torpedo, and the report comes as Pyongyang expands naval capabilities through submarine-launched cruise missile tests and the commissioning of new 5,000-ton destroyers in both the West Sea and East Sea.

The disclosure adds to a broader pattern of North Korean naval weapons development centered on undersea strike platforms. It also suggests continued emphasis on integrating new guidance technologies into maritime systems.

#NorthKorea

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🇨🇳 China Tightens AI Risk Controls

China’s State Council, chaired by Premier Li Qiang on Oct. 16, reviewed progress on the “AI+” initiative and called for stronger risk assessment to protect the AI security baseline. The meeting said AI is a key variable shaping future development and urged more application-led innovation, algorithm advances, computing-power coordination, and higher-quality data supply in China.

The meeting paired support for deployment with tighter security management, including sector-based and tiered regulation. Separately, the commerce and science ministries have proposed revisions to China’s technology export control catalogue, adding 40 items across AI, biomedicine, and photovoltaics, including 23 AI-related technologies such as large models, agents, computing clusters, and information processing.

The proposed export controls are open for public comment until Nov. 15 and are subject to immediate pre-export registration. Technologies already in the public domain through open source or academic publication are excluded from management.

#China

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🇯🇵 Takaichi Sends Yasukuni Offering

Japanese Prime Minister Sanae Takaichi on Oct 17 sent a ritual offering to Yasukuni Shrine in Tokyo at the start of its three-day autumn festival. The offering was a “masakaki” tree made of evergreen twigs and was sent in her capacity as prime minister. A source close to Takaichi said she is unlikely to visit the shrine during the festival.

Yasukuni honours Japan’s war dead, including 14 Class-A war criminals, and remains a recurring source of friction with neighbouring states over Japan’s wartime legacy. South Korea’s Foreign Ministry said later on Oct 17 that it expressed deep disappointment and regret over the offering, despite improved bilateral ties. The move also comes as Japan-China relations remain strained.

Economic and fiscal policy minister Minoru Kiuchi visited the shrine on the same day, while other senior Japanese officials also sent offerings. A cross-party group of lawmakers plans a visit on Oct 19.

#Japan #SouthKorea #China

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🇨🇳 China Pushes AI War Microdramas

Chinese state authorities and the People’s Liberation Army are producing AI-generated microdramas designed to promote Chinese culture, history and values. The short-form productions include war-themed content and are part of a new state-backed media push in China.

The rollout places generative AI inside official propaganda and political messaging, using low-cost, rapid-output formats already common on small screens. It also aligns state institutions with a fast-growing content model, as authorities seek audience reach in an already crowded market for cheaply made short dramas.

The effort expands the use of AI beyond productivity and entertainment into state messaging. Its effectiveness will depend on whether official content can compete for attention within China’s saturated short-video ecosystem.

#China

@asianomics

🇭🇰 Hong Kong Expands Gold Hub Push

Hong Kong Financial Services and the Treasury Secretary Christopher Hui said the city will launch a central gold clearing platform in the first quarter of next year as part of its bid to build a global gold and precious metals ecosystem. The platform in Hong Kong will handle physical delivery and payments, with settlement linked to the real-time gross settlement system.

Hui said the city aims to connect regional liquidity with international market standards and offer an Asian time-zone venue for trading, storage, clearing, refining and risk management. He also said government backing, integrated settlement and ties with Shanghai would distinguish Hong Kong from London, one of the world’s main bullion hubs.

The push is aimed at covering the full gold value chain rather than only trading activity. It also positions Hong Kong as a regional bridge between mainland Chinese market access and international bullion infrastructure.

#HongKong #China

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🇨🇳 Foreign Banks Cut China Branches

Foreign lenders are shrinking their physical footprint in China as weak returns pressure local operations, with Deutsche Bank, HSBC and Standard Chartered closing branches or sub-branches over the past year. According to a South China Morning Post report, Deutsche Bank closed its Chongqing branch last month after shutting Qingdao earlier this year, leaving it with four branches outside Beijing headquarters.

Foreign banks remain marginal in China’s banking system, with 41 foreign-funded entities holding 4.87 trillion yuan in assets at end-2025, or 1.3% of industry total. Among 27 locally incorporated foreign banks, median return on equity was 1.61% last year, far below the 10% level generally viewed as healthy, reinforcing a shift toward wealth management, digitalisation and cross-border business rather than conventional lending and deposit-taking.

Fitch described the closures as selective network optimisation rather than a market exit, as digital channels reduce the need for smaller outlets. Foreign banks are expected to stay focused on higher-value client segments where they retain an advantage.

#China #Germany #UK

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