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GEOPOLITICAL RISK + GLOBAL MARKETS

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GLOBAL RISK

North Korea Says It Tested a Hydrogen Bomb Meant for Missiles North Korea carried out its sixth and most powerful nuclear test in an extraordinary show of defiance against President Trump on Sunday, saying it had detonated a hydrogen bomb that could be mounted on an intercontinental ballistic missile. -NYT

Rivalry and illusion shape Asia's connectivity contest In era of 'Belt and Road' initiative, India and Japan seek to blunt China's expansion -Nikkei

CHINA RISK

China's anger at West to overshadow tougher action on North Korea North Korea’s latest nuclear test is likely to pile more pressure on China to take tough action against its neighbor, but Beijing already doubts economic sanctions will work and says it is not its sole responsibility to rein in Pyongyang. -Reuters

19TH CONGRESS = OCTOBER 18 >> Congress a date with destiny for many Announcement suggests agreement has been reached on new leadership line-up with focus also on economic policy and livelihood issues -SCMP

China’s War on Dissent Detained activists have two choices: vanish or confess. -The Diplomat

How America's China watchers misread China Robert Lawrence Kuhn says analysts who see Beijing conducting a more muscular foreign policy and curbing freedoms at home have failed to account for the steps being taken to improve the rule of law -SCMP

JAPAN RISK

Latest poll finds support rate for Abe Cabinet virtually unchanged at 44.5% On new Democratic Party leader Seiji Maehara, who was chosen Friday to lead the struggling main opposition party, 51.2 percent of respondents said they have no expectations for him, topping 40.3 percent who said they have certain expectations. -The Japan Times

Japan debates boosting defense against missiles As the threat from North Korea continues, calls have arisen to develop more capacity to destroy launch sites, as well as missiles that are in flight -Taipei Times

Abe and Putin to hold summit Thursday in Vladivostok Japan and Russia have agreed to conduct joint economic activities on and around four Russia-held, Japan-claimed islands off Hokkaido. One of the focuses of the summit will be whether they can agree to quickly start the projects. -The Japan Times

KOREAS RISK

Star North Korean newsreader announces ‘perfect’ atomic blast to the world -SCMP

THINK TANK WATCH >> ROK-U.S. Strategic Forum 2017: Now and the Future of the ROK.-U.S. Alliance -CSIS

Trump Says He's Looking Into South Korea Trade Accord Future Trump’s administration had begun talks with South Korea to revise a trade deal signed in 2012 by the Obama administration, but they failed to agree on a way forward after joint meetings in August. The dialogue comes amid rising tensions with North Korea over Pyongyang’s missile tests. -Bloomberg

TAIWAN RISK

The Liberty Times Editorial: Democracy’s magnetism in Taiwan -The Liberty/Taipei Times

Government vows to help free Taiwanese detained in China The government will actively provide assistance to help free people who have been detained in China for unknown reasons as long as the families of the victims agree, the Mainland Affairs Council (MAC), Taiwan's top agency for dealing with China, said Wednesday. -Focus Taiwan

Presidential Office: Tax reform geared for investment, development -FocusTaiwan

Presidential Office spokesman Sidney Lin (林鶴明) said recently that the reforms will revolve around three main principles: 

1.     To ease the income tax burden on salaried people and middle and low-income earners;

2.   To ease the tax burden on small and medium-sized enterprises and start-up companies;

3.   To establish a competitive tax system in line with international trends.

SOUTHEAST ASIA RISK

Chinese fishing fleets threaten to inflame tensions in disputed seas Thousands of vessels head to South China Sea after ban on catching fish in the area is lifted, but their presence could anger neighbouring states -SCMP

Inverted flags, illegal migrants: how Malaysia-Indonesia ties took a turn for the worse -SCMP

During much of Indonesia’s early history, its egalitarian distribution of wealth and assets set it apart from its neighbors. But seven decades later, the legacy of equality is fading. If Indonesia is to remain one of Asia’s most robust economies, it is essential that its current leadership recommit to narrowing the socioeconomic gap. -Project Syndicate 

THE DUBAI EXPRESS >> Waiting for Yingluck Shinawatra Supporters crowded the streets to hear the verdict, but Yingluck never arrived. -The Diplomat

Hundreds are dead in Burma as the Rohingya crisis explodes again Hundreds of people have died in western Burma in clashes between insurgents and security forces, a dramatic escalation of the Rohingya crisis that has haunted the country’s transition to democracy and tainted leader Aung San Suu Kyi’s legacy. -The Washington Post

Cambodian opposition leader Kem Sokha arrested over alleged plot with U.S. -Reuters

S Korea competing for SE Asia projects Public construction in Southeast Asia is worth about NT$8 trillion, and the government is determined to help firms get a slice -Taipei Times

APAC || GLOBAL MARKETS IMPACT + OPPORTUNITY

GLOBAL BUSINESS

THE GIFT THAT KEEPS ON GIVING >> China Inc. earnings rise on resource rebound, public spending Net profit rises 16% on previous year but sustainability concerns remain. Thanks to rising resource and property prices along with state-supported infrastructure spending. -Nikkei

Fosun's Inside Track In other words, Fosun is ready to start buying again. Or shifting up a gear, anyway, since it's unclear if the conglomerate ever really stopped buying. -Bloomberg Gadfly

Trump to decide on China-backed buyout of U.S. chipmaker Lattice Semiconductor Corp (LSCC.O) said in a filing Friday it will seek Trump’s approval for its proposed $1.3 billion sale to Canyon Bridge Capital Partners, gambling that the former real estate dealmaker will approve the tie-up against the advice of the Committee on Foreign Investment in the United States (CFIUS), which scrutinizes foreign deals for national security concerns. -Reuters

China doubles down on real-name registration laws, forbidding anonymous online posts China’s crackdown on Internet freedom is getting even more intense. Last Friday, the country’s top Internet censor announced a new set of regulations (link via Google Translate) meant to eliminate posts by anonymous users on Internet forums and other platforms. The Cyberspace Administration of China will start enforcing those rules on Oct. 1. -Tech Crunch

Article 15 of the Measures for the Administration of Internet Information Services stipulates that Internet information service providers shall not make, reproduce, publish or disseminate information containing the following: (1) opposing the basic principles as defined in the Constitution; (2) endangering national security (3) to damage national honor and interests; (4) to incite national hatred, ethnic discrimination and undermine national unity; (v) to undermine national religious policies and to promote cults and (6) spreading rumors, disrupting social order and destroying social stability; (7) spreading pornography, pornography, gambling, violence, murder, terror or abetting a crime; (8) insulting or slandering others and infringing upon others (9) Any other content that is prohibited by laws and administrative regulations.

Just smile: In KFC China store, diners have new way to pay -Reuters

What You Don’t Know about Japan’s Sharing Economy -Disrupting Japan (Podcast)

China-Taiwan Tourism: A Bellwether for Stormy Seas Ahead? -TheNewsLens

India cabinet approves raising levy on luxury cars, SUVs The levy is part of a nationwide goods and services tax (GST) launched last month to replace a multitude of provincial and national levies in the biggest tax reform in 70 years. -Nikkei

Uber back running in the Philippines after it paid $9.6M in penalties -Tech Crunch

Cambodian government closes newspaper after tax row One of Cambodia's last independent newspapers, the Cambodia Daily, has announced it will close after the government ordered it to pay a huge tax bill. -BBC

GLOBAL MACRO

OPEN WORLD ECONOMY >> China's Xi says BRICS must promote open world economy The BRICS group of emerging economies must promote trade liberalization and an open world economy, Chinese President Xi Jinping said at a business meeting on Sunday at the start of a three-day summit being held in southeastern China. -Reuters

CLOSED CAPITAL ACCOUNT >> China's ICBC will follow cabinet rules on overseas M&A -Reuters