Asia Economy

Bank Indonesia has reduced its interventions in the foreign exchange spot market, according to the central bank governor. The move signals greater comfort with the rupiah's current level and a shift in how the bank manages currency stability. Markets watch these interventions closely as a gauge of pressure on Southeast Asia's largest economy's currency.

A Reuters commentary examines where US Federal Reserve monetary tightening will hit hardest across Asia. As the Fed continues raising interest rates, attention is turning to which regional economies face the greatest strain from capital outflows, weaker currencies and higher borrowing costs. Analysts are weighing vulnerabilities such as current account deficits, external debt levels and dependence on dollar funding across Asian markets.

The IMF faces a major test at its gathering in Bangkok, where policymakers are weighing how to steady a global economy strained by high debt, elevated interest rates and slowing growth. Analysts, including the Atlantic Council, are watching whether the institution can offer credible guidance to emerging economies in Asia struggling with capital outflows and currency pressure.

China is considering allowing Alibaba and ByteDance to purchase Nvidia's newest chips, according to a report from Asia Economy. The move would mark a shift in Beijing's stance on access to advanced US semiconductors for its largest tech firms, with implications for US-China trade and the global AI race.

China plans to open new manufacturing facilities in Kazakhstan, including plants producing robots, cars and pharmaceuticals. The projects deepen economic and industrial cooperation between the two neighbours and fit Kazakhstan's push to attract foreign investment and diversify its economy beyond raw materials. The announcement is drawing attention across regional media as a sign of expanding Chinese industrial presence in Central Asia.

Indonesia's rule limiting the budget deficit to 3% of GDP is being debated, with critics asking whether it serves as a necessary fiscal guardrail or a barrier to growth. Supporters say the cap protects investor confidence and fiscal discipline, while opponents argue it constrains spending needed for development and infrastructure in Southeast Asia's largest economy.

A discussion on how India is approaching the rapid rise of artificial intelligence, exploring the country's opportunities and challenges in adopting AI across its economy and society. The conversation, highlighted by the Asia Society, focuses on how India positions itself in the global AI race, touching on policy, innovation and the impact on its large workforce.

Hong Kong is stepping up efforts to strengthen economic and professional links with Central Asia. The Hong Kong Trade Development Council, together with the city's Department of Justice, led the Collaborate2Win campaign across Xinjiang, Kazakhstan and Uzbekistan, promoting Hong Kong's financial, legal and professional services as it seeks new markets and partners in the region.

Seven out of ten startup employees say South Korea's 52-hour workweek should be made more flexible, according to a report carried by Asia Economy. The finding points to growing pressure within the startup sector to loosen rigid weekly hour caps, with workers and employers arguing that fixed limits do not fit project-based schedules and irregular workloads common at young companies.