ANCHORAGE, ALASKA – A highly anticipated summit between U.S. President Donald Trump and Russian leader Vladimir Putin concluded in Alaska on Friday without any concrete agreements to end the ongoing Russia-Ukraine war. While both leaders described the talks as “productive,” the absence of a clear breakthrough leaves significant questions regarding the conflict’s future and its broader economic impacts. A Symbolic Meeting with Limited Tangible Results The summit began with a notable display of goodwill, as President Putin received a red-carpet welcome and a shared ride in Trump’s presidential limousine. This gesture underscored the friendly tone of the discussions, a point that Putin later lauded, along with Trump’s perceived understanding of Russia’s national interests. Despite initial hopes for a ceasefire or a path to negotiations, President Trump conceded that a deal “hasn’t quite got there,” although he expressed optimism about future progress. Details on any specific points of agreement remained vague, with no concrete announcements made during their brief joint appearance. This lack of specificity has led to concerns about the limited tangible outcomes of the high-profile meeting. Time and Sanctions:

US Trade Tensions Drive ASEAN+3 Closer Together ASEAN+3 Outlook Dims Amid US Tariff Pressures, Reinforcing Urgency for Regional Integration The ASEAN+3 Macroeconomic Research Office (AMRO) has revised its regional growth forecast downward in its latest July update of the ASEAN+3 Regional Economic Outlook (AREO), citing heightened global uncertainties—particularly those stemming from evolving US tariff measures. According to the updated projections, the ASEAN+3 region is now expected to grow at 3.8 percent in 2025 and 3.6 percent in 2026. These forecasts mark a notable reduction from April’s projections of 4.2 percent and 4.1 percent, respectively. The key difference lies in the incorporation of the newly announced US tariffs, which were not factored into the April outlook. The tariffs—part of a broader shift in US trade policy—have cast a cloud over the economic outlook for the region, which comprises the 10 ASEAN member states, along with China, Japan, Korea, and Hong Kong, China. Despite these external pressures, AMRO Chief Economist Dr. Dong He emphasized that ASEAN+3 enters this period of global volatility from a position of relative strength: “Encouragingly, the ASEAN+3 region enters this

What’s Changing for Asia and the World Economy The United States under President Donald Trump has opened a new front in global trade tensions by rolling out a baseline 10% tariff on all U.S. imports, layered with additional, higher duties on selected products and specific trading partners—including several in the Asia‑Pacific. Markets across the region are now grappling with what these measures mean for exporters, supply chains, currencies, and—ultimately—household purchasing power. This in‑depth explainer expands on our initial report, providing added context, scenario analysis, country risk highlights, and a practical checklist for consumers, businesses, and investors in Asia. President Trump’s administration believes that tariffs are the most effective tool to bring manufacturing jobs back to American soil. While an initial 90-day pause was implemented for countries to negotiate deals, this deadline passed on July 9th with only a few agreements reached. Subsequently, revised tariffs were announced for several nations, including many in Asia, with another pause until August 1st. Asia-Pacific Consumers: Feeling the Ripple Effect While the immediate impact of these tariffs is often highlighted for American consumers, who will

Fed’s Signals Possible July Rate Cut as Inflation Cools  Fed’s Bowman Signals Support for July Rate Cut Amid Easing Inflation and Labor Market Concerns Federal Reserve Governor Michelle Bowman has indicated she would support an interest rate cut as early as the Fed’s next meeting in late July. Her remarks reflect growing signs that the central bank may shift toward a more accommodative policy stance due to cooling inflation and early signs of labor market weakness. Speaking at a conference in Prague on Monday, Bowman said recent inflation data has either declined or come in below expectations, suggesting the Fed may no longer need to keep rates at restrictive levels.“Should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting,” she said, adding that this would help move rates closer to neutral and support the labor market. Her comments follow similar remarks from Fed Governor Christopher Waller, who also said a rate cut could come as soon as July. Tariffs and Inflation: Limited Impact for Now Bowman also said that the inflation impact from

Japan has relinquished its position as the world’s largest creditor nation for the first time in 34 years, according to data released today by the Ministry of Finance. Despite a historic rise in its net overseas assets, Japan was overtaken by Germany, whose stronger current account balance and euro-denominated holdings outpaced Japan’s yen-adjusted totals. As of the end of 2024, Japan’s net overseas assets—the difference between the value of its foreign assets and liabilities—rose 12.9% year-on-year to a record high of ¥533.05 trillion (approximately US$3.7 trillion). This marks the first time Japan’s net overseas assets have exceeded ¥500 trillion. However, this total was insufficient to maintain its long-held status as the top creditor nation, as Germany’s net overseas assets stood higher at ¥569.65 trillion. The Ministry of Finance attributed the growth in Japan’s net overseas assets primarily to the yen’s depreciation, which increased the yen-converted value of the nation’s foreign currency-denominated assets, including overseas stocks, bonds, and direct investments. The yen weakened significantly, with the exchange rate at ¥157.89 to the U.S. dollar at the end of 2024, compared to