International News 03 October 2025
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Asian Manufacturing Contracts in September as Trade Pressures Mount
Manufacturing activity across most major Asian economies weakened in September 2025, reflecting slowing growth in the United States, rising U.S. tariffs under President Donald Trump, and subdued demand from China. Export-driven economies such as Japan and Taiwan reported contractions, while China’s factories shrank for a sixth consecutive month, underscoring the dual challenge of weak domestic demand and external trade pressures. Economists warn that Asia’s manufacturing sector faces persistent headwinds, likely prompting more policy easing from regional central banks. Japan’s S&P Global manufacturing PMI fell to 48.5 from 49.7 in August, its sharpest decline in six months, as both output and new orders dropped. Taiwan’s PMI slipped further to 46.8, signaling deeper contraction, while the Philippines and Malaysia also posted weaker activity. In contrast, South Korea’s manufacturing PMI rebounded to 50.7, its first expansion in eight months, supported by stronger overseas demand. However, Seoul’s export outlook remains uncertain, depending on negotiations with Washington to lower tariffs on Korean imports, including automobiles, in exchange for a $350 billion investment commitment in the U.S.
Gold Surges to Record High Amid U.S. Shutdown and Weak Jobs Data
Global gold prices climbed to fresh record highs on Wednesday (Oct 1, 2025), supported by a weaker U.S. dollar and strong safe-haven demand after the partial shutdown of the U.S. government. Spot gold rose 0.1% to $3,861.77 per ounce in New York trading, briefly touching a new all-time high of $3,895.09. U.S. gold futures for December delivery closed 0.6% higher at $3,897.50. The dollar slipped against a basket of major currencies, making gold more affordable for international investors. Meanwhile, private payrolls data from ADP showed a surprise drop of 32,000 jobs in September, far below expectations for a 50,000 gain, reinforcing speculation that the Federal Reserve will cut rates this month. Market sentiment has shifted sharply, with the CME FedWatch Tool showing a 99% probability of a Fed rate cut in October. Analysts highlight surging interest from both institutional and retail investors, with some projecting gold could soon break above $4,000 per ounce if current trends continue. Other precious metals saw mixed performance: silver jumped 1.6% to $47.42, its highest in over 14 years, while platinum slipped 1.6% to $1,549.17 and palladium fell 1.1% to $1,243.31. Ongoing political uncertainty in Washington and fragile U.S. economic data have further boosted gold’s appeal as a safe-haven asset.
Taiwan’s Russian Naphtha Dilemma: Politics vs. Energy Reality
Taiwan, long viewed as a key U.S. ally in Asia against China’s growing diplomatic and military pressure, now faces scrutiny over its energy trade. Despite aligning with Western sanctions against Russia since the Ukraine invasion in 2023, Taipei has emerged as the world’s largest importer of Russian naphtha, buying roughly US$1.3 billion worth in the first half of 2025. According to CREA data (via The Guardian), this is nearly six times the 2022 average and 44% higher than the same period in 2024. Naphtha is critical for Taiwan’s petrochemical and semiconductor industries, which form the backbone of its economy and global tech leadership. This creates a paradox: Taiwan publicly supports Ukraine while quietly relying on discounted Russian energy to sustain its domestic industries. The contrast becomes sharper when compared to India. New Delhi imported more than 1.4 million tons of Russian naphtha in the same period but was hit with 25% U.S. tariffs by the Trump administration as punishment. Taiwan, however, has not faced similar penalties, reflecting Washington’s strategic ambiguity and prioritization of Taiwan’s geopolitical role over strict energy-trade enforcement. Historically, U.S.–Taiwan ties evolved from Cold War defense pacts to today’s framework under the Taiwan Relations Act (1979), which allows military support without formal recognition. Under President Trump, the emphasis has shifted more toward economic leverage than security guarantees. Taiwan’s naphtha imports expose the tension between political signaling and economic survival, raising questions about how far the U.S. is willing to tolerate trade contradictions from its most important tech ally in Asia.
https://internasional.kontan.co.id/news/taiwan-geser-india-kini-jadi-importir-terbesar-naphtha-rusia