Chinese Troops in Ukraine, Tariffs Pause (For Some…)

Andrew Sheves Good morning.

🇨🇳** Chinese Soldiers Captured in Ukraine**

Ukraine has captured two Chinese nationals fighting for Russia in the Donetsk region, with President Zelensky claiming intelligence suggests “much higher” numbers of Chinese soldiers in Russia’s forces. Ukrainian Foreign Minister Andrii Sybiha summoned China’s envoy in Kyiv, stating that Chinese troops on Ukrainian soil “puts into question China’s declared stance for peace.” Beijing responded it was “verifying the relevant situation” while calling Ukraine’s accusation of additional Chinese involvement “groundless,” maintaining that it consistently urges its citizens to avoid armed conflicts. More - BBC

🇺🇸** Tariffs On, Tariffs Off…**

President Trump announced a 90-day pause on higher tariffs that took effect just 13 hours earlier against dozens of trade partners, while simultaneously raising duties on China to 125%. The dramatic reversal came after markets plunged and recession fears mounted, with Trump acknowledging he was influenced by bond market instability. Financial markets responded immediately with the S&P 500 surging 9.5% in its best rally since 2008, while Treasury Secretary Scott Bessent characterized the pivot as a strategic win that “created maximum negotiating leverage” in upcoming trade talks with nations including Vietnam, Japan, India and South Korea. More - Bloomberg

Comment* - the US markets surged on this news, arguably pulling the US back from the brink of a bear market and recession-terrority. However, for businesses and manufacturers, enormous uncertainty remains with respect to what the eventual tariffs will look like and what other changes might lie ahead. Tonight’s euphoria on Wall Street is far from the end of this drama.*

Asia Stability Ratings and News Summary

More Unstable

🇦🇫 Afghanistan, 🇦🇲 Armenia, 🇦🇿 Azerbaijan, 🇧🇩 Bangladesh, 🇧🇹 Bhutan, 🇰🇭 Cambodia, 🇨🇳 China, 🇹🇱 East Timor, 🇬🇪 Georgia, 🇮🇳 India, 🇮🇩 Indonesia, 🇯🇵 Japan, 🇰🇿 Kazakhstan, 🇰🇬 Kyrgyzstan, 🇱🇦 Laos, 🇲🇾 Malaysia, 🇲🇳 Mongolia, 🇲🇲 Myanmar, 🇳🇵 Nepal, 🇰🇵 North Korea, 🇵🇰 Pakistan, 🇵🇭 Philippines, 🇸🇬 Singapore, 🇰🇷 South Korea, 🇱🇰 Sri Lanka, 🇹🇼 Taiwan, 🇹🇯 Tajikistan, 🇹🇭 Thailand, 🇹🇲 Turkmenistan, 🇺🇿 Uzbekistan, 🇻🇳 Vietnam

More Stable

No countries were more stable over this period

Unchanged

🇧🇳 Brunei, 🇲🇻 Maldives

Asia Regional News Summary

Singapore’s economy is bracing for turbulence as the global trade war escalates, with Deputy Prime Minister Gan Kim Yong warning of “rough waters” ahead. The government is reassessing its growth forecast in light of new U.S. tariffs, which have already caused a significant drop in the stock market, with shares plunging more than 7% due to tariff fears. Prime Minister Wong has urged the nation to prepare for further shocks as the impact of these tariffs unfolds [SOURCE - Channel News Asia].

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