Global tech rout stokes Asia-Pacific growth fears

Democrats in the US are reportedly aiming to dismantle Trump's trade policy by starting with his tariffs on Canada. Senator Wyden expressed that repealing the Canadian product tariffs enjoys broad backing. Bank of Canada Governor Macklem stated he is optimistic about lower US tariffs but cautioned he cannot dismiss the possibility of further escalation before the trade environment improves.

The president posted on Truth Social about the severe equity market drop, calling it one of the stock market's worst days ever while expressing certainty that stocks would eventually grow bigger and stronger.

War Secretary Hegseth could reportedly face an impeachment vote as early as next week. Secretary of State Rubio pushed back against reports he was mulling an exit from the administration, stating he planned to stay until Trump's term concludes.

Texas's incoming governor urged that data centre construction be put on hold pending the introduction of measures safeguarding residents.

The state of US-Iran relations remains broadly the same, President Trump noting Washington needs to determine whether more action against Tehran is required, while stating he prefers not to destroy the rest of Iran.

Per Axios, Trump gathered his national security advisers ahead of the remarks. CENTCOM is said to be putting the final touches on preparations for a potential return to large-scale combat, but no order has been given.

Diplomacy is ongoing. Iran is understood to have conveyed a fresh nuclear proposal to the US via Qatar, though a senior Iranian official indicated Tehran would not engage in discussions unless its seven demands are met by Washington. Fars News reported that Iran sees no further diplomacy until those prerequisites are fulfilled.

The New York Times said Iran is assessing specific proposals from mediators related to its nuclear programme, with Vice President Vance reportedly becoming a prominent advocate for the Qatar-led mediation efforts.

Military action by the US remains a possibility, with reports suggesting Trump could consider limited action against Iranian nuclear sites rather than broader attacks on energy infrastructure.

Governments across Asia indicated their preparedness to tackle increased financial market swings following the worldwide stock decline. South Korea's finance minister pledged that the authorities would implement necessary steps to counter extreme market moves and major divergences from fundamentals. Seoul also revealed a three-month relaxation of margin requirements.

Taiwan directed its regulators to keep a close eye on equity markets and draft adaptable stabilisation tactics. In Japan, Prime Minister Takaichi mentioned that the government is mulling support payments covering over 30% of workers.

Canada's government proposed total borrowing of CAD 611bln for 2027/28, rising from CAD 587bln in 2026/27. Deficit forecasts were marked down across the entire outlook period. Ottawa also trimmed its GDP growth projections for 2026 and 2027.

Going forward, the spotlight will stay on the aftermath of the US midterm elections and developments in the conflict between the US and Iran.