News Flash Asia from October 29, 2025

Tensions on the Korean Peninsula

The Korean Peninsula remains a flashpoint: On October 22, North Korea apparently tested several short-range missiles; it was the first such launch in months. Shortly afterward, Pyongyang confirmed the launch of a "new weapons unit" with hypersonic projectiles.

In this context, US President Donald Trump said before his visit to South Korea: “I would love to meet Kim Jong Un again” , although there was no reaction from Pyongyang.
The North Korean tests appear to be deliberately timed in the run-up to major regional diplomatic events – a signal of strength. For South Korea and the US, this means, time and again, heightened vigilance, but also a diplomatic tightrope walk – deterrence on the one hand, and avoiding escalation on the other.

The likelihood of further North Korean provocations remains high – particularly in the lead-up to the upcoming summit between Trump and Chinese President Xi Jinping in South Korea. It remains to be seen whether the US and South Korea will focus on deterrence or show a willingness to engage in dialogue, as Donald Trump currently seems to prefer.

Trump in Japan

In Tokyo, Donald Trump met with the new Japanese Prime Minister Sanae Takaichi; agreements were signed to strengthen the US-Japan pact and to secure rare earths.

Takaichi also used a meeting with the Australian Prime Minister to reaffirm security cooperation in the Indo-Pacific – Japan wants to involve Australia more closely in the “Free & Open Indo-Pacific” initiative .

China & Economy – Strategy Change in Asia

The Chinese-Asian economic axis is gaining prominence: At the recent summit of the Association of Southeast Asian Nations (ASEAN) in Malaysia, China and the ASEAN states signed a revamped free trade agreement (“3.0” version) focusing on the digital economy, green technologies, and supply chains. Simultaneously, the US government announced trade agreements with Malaysia and Cambodia – with the aim of curbing China's influence in Southeast Asia. China is using economic integration as a strategic tool – ostensibly in line with free trade policy, but also driven by geopolitical objectives. As a result, Southeast Asia is increasingly becoming an arena for competition between major powers – no longer solely military policy, but also economic and supply chain policies are shaping the landscape.

In the coming days, it will be observed whether China's leadership actually provides concrete political impetus to stimulate the domestic economy – for example, through consumer incentives or infrastructure programs. At the same time, every statement from Beijing will be analyzed in light of trade competition with the USA.

For Southeast Asia, this means: investment commitments, trade agreements, supply chain realignments – whoever delivers first wins trust . Delays could create the impression of "promises without implementation" in the region.

Natural events & climate – Southeast Asia at risk from weather

Tropical Storm Fengshen struck the Philippines , leaving at least eight dead and forcing approximately 27,000 evacuated. This weather pattern is expected during the transition to the northeast monsoon season, but poses significant risks to infrastructure and population.

The onset of the northeast monsoon season and the still-active cyclone season in the western Pacific mean that weather-related disruptions in the region cannot be ruled out next week either. Caution is advised for industrial and commercial networks.

Climatic and natural disaster-related risks are no longer a marginal issue in Southeast Asia – they are increasingly impacting the economy, living conditions and supply chains.