News Flash Asia from September 16, 2025

Stock markets, politics & economy

China is currently making concerted efforts to boost domestic growth to counteract the negative effects of US tariffs. A new 19-step package of measures is specifically targeting the tourism, services, and healthcare sectors – including measures to promote consumption, expand travel, and boost the domestic market. At the same time, several economic indicators are weakening: output and private consumption have been less than expected, and business confidence is declining noticeably.

Despite these difficulties, foreign investors are slowly returning to the Chinese market. Technology sectors such as AI, biotechnology, and semiconductors are particularly attractive – supported by a somewhat more relaxed trade policy and positive monetary signals. The Shanghai Composite and the Hang Seng Index are showing signs of growth as a result.

Financial markets in India started positively today: there is optimism about potential progress in talks with the US, particularly regarding trade. The prospect of imminent interest rate cuts in the US (by the Federal Reserve) is supporting many Asian markets.

The International Monetary Fund (IMF) forecasts a somewhat slower growth profile for Vietnam : GDP growth of around 6.5% is expected for 2025 (compared to approximately 7.1% in the previous year). The IMF cites US tariffs and the potential consequences of a further escalation of global trade tensions as contributing factors.

Another area showing noticeable restraint is the hotel real estate sector in the Asia-Pacific region : In the first half of 2025, hotel investments declined by approximately 23% compared to the previous year. Particularly striking is Thailand's greater liquidity and domestic interest, which is stronger than that of many larger markets. Analysts expect the market to recover somewhat by the end of the year.

Society & Politics

Analyses indicate that in South Asian countries – such as Nepal, Bangladesh, and Sri Lanka – there is a growing mobilization of younger population groups (“Gen Z”). These groups are demanding greater political accountability, transparency, and social justice. Different contextual factors – allegations of corruption, restrictions on freedom of expression, and social inequality – are leading to protests and unrest in specific countries.

Meanwhile, the geopolitical situation in the Indo-Pacific remains tense. Former US advisors warn of a "grave security situation" in the region, given China's increased maritime presence, its attempts to influence smaller Pacific states, and its activities near Australia.

Sports & Culture

In the Cricket Asia Cup, Sri Lanka secured a narrow victory against Hong Kong in a group match, with a decisive 68-run knockout by Pathum Nissanka. And in the match between India and Pakistan – politically charged as always – India won by a comfortable margin.

Outlook & Assessments

• China is likely to see further stimulus measures in the coming weeks if current economic challenges (weak consumption, real estate market problems, export-related burdens from sanctions) are not mitigated.

• A key issue will be how far US tariffs and trade conflicts continue to affect investment and trade flows in the region.

• The potential interest rate cut by the US Fed is being closely watched in Asia – it could influence capital flows, especially in so-called emerging market markets.

• Socially, protest movements and demands for political transparency are growing in Southeast Asia – as younger generations increasingly address political and social issues publicly.