Asian economies are expected to exercise caution in buying Iranian oil despite a 60-day sanctions waiver, weighing compliance, financial risks, and potential US-Tehran hostilities. This comes as global markets seek cheaper energy, but refiners view the waiver as too short for complex legal requirements.
Chief Economic Advisor V Anantha Nageswaran stated that East Asian nations like China, South Korea, and Vietnam achieved success by providing conditional government support to domestic industries, demanding performance and competitiveness in return. This 'protection for performance' model is a key lesson for India's industrial policy.
Indonesia's rupiah has fallen to a record low against the US dollar, surpassing 18,000, driven by surging energy costs from the US-Israel war and proposed US import duties. A narrowing trade surplus and high dollar demand exacerbate the situation, despite central bank interventions.
South Korea's trade balance with China has swung into a significant surplus, driven by a surge in memory chip exports. This marks a rare bright spot among East Asian economies facing pressure from China's rising competitiveness.
Oil prices dropped significantly on hopes of a US-Iran deal to reopen the Strait of Hormuz. However, analysts warn Asian economies may struggle to recover quickly from the energy shock due to backlogs and depleted inventories.
New research suggests population ageing's economic impact may be less about labour shortages and more about its effect on total factor productivity (TFP). The "silver dividend" of older workers staying in the labor market longer could offset negative growth impacts.
Asian migrant workers in the Gulf are testing stablecoins as a backup channel for sending money home, as the Iran war heightens fears that the risk of US sanctions could disrupt remittances that millions of families and several Asian economies rely on. Remittances from these workers account for 3 per cent to 5 per cent of gross domestic product in several emerging markets – in Nepal, it is as high as 10 per cent, according to data from the Global Settlement Network. Concerns over remittance...
Foreign investors continued their selling spree in Indian equities, withdrawing Rs 60,847 crore in April following a massive Rs 1,17,775 crore sell-off in March. Cumulative FPI outflows from Indian equities have reached Rs 1,91,969 crore in 2026, reflecting a shift in global capital towards Asian economies benefiting from the AI investment boom, particularly South Korea and Taiwan.
