Asia-Pacific (China, Japan, South Korea, etc.)

• Asia’s factory sector contracted in August due to U.S. tariffs, led by declines in Japan, South Korea, and Taiwan, while China’s private PMI bucked the trend with its fastest growth in five months. 
• China’s official manufacturing PMI signalled contraction for a fifth consecutive month in August—reflecting ongoing external trade tensions and domestic sluggishness. 
• While Japanese business investment remained strong, manufacturer profits fell due to tariff impacts and weak overseas demand.
• Japan’s government is seeking a record budget for FY26, driven by rising debt and increased social welfare outlays. 
• Japan’s factory activity continued to shrink in August as export orders declined further, especially to the U.S. 
• South Korea’s manufacturing PMI marked seven consecutive months of contraction amid U.S. tariff impacts. 
• South Korea’s exports grew 1.3% year-on-year in August 2025, less than the 3.0% forecast, as U.S.-bound shipments fell 12.0% (their biggest drop since May 2020) after new 15% tariffs took effect, with strong gains in semiconductors offset by sharp declines in auto, machinery, and steel exports; the government announced support measures for affected exporters.

Emerging Markets (Latin America, EMEA, others)

• Emerging market equities and currencies remained volatile on shifting trade, monetary, and capital flow outlooks, as investors rotated funds into developed markets. 
• Latin America is forecast to grow just 1.9% as of August, with S. America supported by rebounds in Argentina, Ecuador, and Colombia, but headwinds rising elsewhere.