International News 23 May 2025
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Asia Pacific Markets Weak on Thursday (22/5), Impacted by Wall Street Decline
On Thursday, Asia-Pacific stock markets experienced significant declines, following a sharp drop on Wall Street amid concerns regarding the potential impact of a new US budget bill on the country's fiscal deficit. The Nikkei 225 in Japan fell by 1.06%, the Topix by 0.85%, and the Kospi in South Korea by 0.59%, with the Hang Seng in Hong Kong and the CSI 300 in mainland China also registering losses. Investors are awaiting the budget announcement for 2025 from New Zealand. The market downturn followed a significant sell-off in the US, driven by concerns regarding the growing budget deficit and resulting in higher government bond yields. US stock futures were steady, with the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 futures remaining unchanged after the three major indices on Wall Street closed lower. The yield on 30-year US Treasury bonds rose to around 5.09%, reaching its highest level since October 2023.
Singapore Cabinet Reshuffle: Wong Favours Stability Amid Global Uncertainty
Following the recent election victory, Singapore's Prime Minister, Lawrence Wong, has announced a cabinet reshuffle. The nine ministers who have been retained include the Finance Minister, while six new ministers have been appointed to fill 15 portfolios. Wong, aged 52, maintained the position of Deputy Prime Minister and Minister of Trade for Gan Kim Yong, underscoring the importance of seasoned leadership in the face of global economic turbulence. These changes follow the People's Action Party's decisive victory in the recent elections, driven by concerns regarding living costs in the city-state. In contrast to previous cabinets, Wong opted against appointing a second deputy prime minister, seeking to maintain stability and continuity in the face of challenges such as trade barriers and intense competition. The reshuffle aims to navigate a changed world and maintain leadership efficiency in addressing economic challenges and public concerns.
Singapore's economy rises 3.9% year-on-year, but risks still loom
Singapore's economy grew by 3.9% in the first quarter of 2025, slightly surpassing the initial estimate of 3.8%. However, following seasonal adjustment, the GDP contracted by 0.6% from January to March, outperforming the initial projection of a 0.8% contraction. The Ministry of Trade and Industry has maintained its economic growth projection for 2025 at 0.0% to 2.0%, lowering it from the previous range of 1.0% to 3.0% due to the global tariff plan by the United States. Despite international efforts to ease trade tensions, Singapore remains cautious about the global economic outlook due to uncertainties and downside risks. The country has expressed concerns about the potential repercussions of US tariff policies, including the possibility of recessions and job losses. This has led to speculation that growth projections may need to be revised downward.