News Flash Asia from November 5, 2025

1. Markets & Economy

Asian stock markets experienced one of their sharpest corrections in seven months , triggered by concerns about overvaluation in the tech and AI sectors . At the same time, the weakening US dollar impacted capital flows into the region.

In parallel, KKR announced that around 50% of its capital returns in 2025 will come from Asia – a clear signal that investors continue to see long-term growth potential in the region.

In short:

• Market risk high , sentiment nervous

• Capital flows remain positive – Asia continues to be viewed as a global growth engine.

2. Politics & Geopolitics

At the APEC summit, China moved more into the spotlight after the US president left the stage early – Xi used the gap for a confident trade and integration agenda .

Taiwan accused China of setting new conditions for its participation in the forum – a sign of growing political pressure on Taiwan in multilateral formats.

In Japan, Prime Minister Sanae Takaichi formed a new economic growth HQ to invest particularly in high-tech and defense industries .

In short:

• China is using diplomatic spaces more aggressively

• Taiwan remains a strategic tension factor

• Japan focuses on technological strength and security policy

3. Climate & Sustainability

China is increasingly positioning itself as a potential global climate leader , investing in renewables and green infrastructure in developing countries – but is also being criticized for its opaque goals and timelines .

Essence:

• Climate profile is rising , credibility remains a challenge

• Asia is moving further forward in the global climate discourse.

4. Outlook for the coming week

• Markets remain sensitive to tech valuations and US currency trends.

• Taiwan issue in focus , possible new statements from Beijing

• Observers are waiting for concrete growth-promoting measures from Japan and China.

• Climate signals from China are being closely examined – symbolism vs. implementation.

Conclusion:
Asia is proving volatile, but strategically confident .
Market stress meets long-term economic optimism and political reorganization in the Indo-Pacific region