August 18, 2025 — World News Roundup｜Zelensky Visits U.S. · China Reaffirms “Peaceful Unification” · South Korea Orders “Phased” Inter-Korean Accord · Norway SWF Exclusions · Oil Rebounds Slightly · Dollar Strength

This article summarizes the major news of August 18, 2025 (JST) by “Key Points → Impacts → Outlook.”
SEO keywords covered: Ukraine, Taiwan, China, Korean Peninsula, Gaza, crude oil, dollar, equities, trade.
Reference links are listed at the end.

1) Ukraine Diplomacy: Zelensky in Washington—European Leaders Join to Pre-empt “Ukraine-Excluded” Deals

• Key Points: President Zelensky attends U.S. peace talks. Leaders of the UK, Germany, France, plus EU/NATO officials also present, aiming to prevent a U.S.-Russia–driven outcome post-Alaska summit. Russia continues its eastern offensive; drone strikes hit Kharkiv on Aug. 17–18, killing civilians.
• Impact: Europe to reinforce air defense and power grid support. Energy markets remain prone to geopolitical risk premiums.
• Outlook: Even if talks yield a “principle agreement,” an immediate ceasefire is unlikely. Watch headline-driven moves in European gas/power and defense stocks.

2) China–Taiwan: Beijing Stresses “Effort Toward Peaceful Unification” — Managing Sparks in U.S.–China Dialogue

• Key Points: China’s foreign ministry reiterated pursuit of peaceful approaches on Taiwan. The timing followed U.S. President Trump’s TV remark that “Xi said he would not invade during his term.”
• Impact: Short-term escalation risk eases, but Beijing also reaffirmed it won’t tolerate “external separatist interference.” Structural long-term risks remain.
• Outlook: Expect managed competition in U.S.–China relations. Supply chains to stick with “China +1,” while compliance in semiconductors/telecom regulations grows more crucial.

3) Korean Peninsula: Seoul Orders Phased Implementation of North–South Pacts / U.S.–Korea Joint Drills Begin

• Key Points: South Korea’s cabinet directed phased execution of existing inter-Korean accords. Simultaneously, large annual U.S.–Korea drills begin today (some deferred to September). North Korea continues to reject dialogue.
• Impact: Peninsula risk fluctuates. Drills strengthen deterrence, but potential dialogue could ease geopolitical premiums.
• Outlook: Seoul eyes revival of the 2018 military accord. Focus: balancing border control & sanctions compliance with humanitarian exemptions.

4) Middle East & ESG: Norway Sovereign Wealth Fund Excludes 6 Firms Linked to West Bank/Gaza

• Key Points: The GPFG, one of the world’s largest SWFs, excluded six firms over human rights concerns tied to settlements and Gaza. In Israel, mass protests continued demanding war’s end and hostage releases. In Gaza, Hamas opposed the southward relocation plan for residents.
• Impact: ESG flows may trigger stricter auditing/disclosure and affect financing costs. Shipping/insurance face ongoing geopolitical premium recalibration.
• Outlook: Expanded humanitarian corridors could reduce oil volatility; stalled ceasefire risks higher logistics/insurance costs.

5) Macro & Markets: Dollar Strength · U.S. Futures Flat · Tariff Coverage Expanded

• Key Points: FX markets open the week with a strong dollar (geopolitics, Fed comments, retail earnings ahead). U.S. futures hover flat. Commerce Department announced an expansion of 50% steel/aluminum tariff coverage (Aug. 15).
• Impact: Dollar strength weighs on EM currencies and commodities. Tariff expansion raises domestic U.S. prices & corporate costs, complicating inflation timing.
• Outlook: Watch retail earnings, Fed speeches, Jackson Hole for volatility. Exporters must assess tariff sensitivity by product line.

6) Commodities: Oil Edges Up on U.S. Criticism of India’s Russian Crude Imports

• Key Points: White House trade adviser said India’s Russian crude buys “fund the war,” urging a halt. Oil rebounded but stayed in the high-$60s range.
• Impact: Any shift in India’s sourcing could disrupt freight, insurance, refining margins.
• Outlook: Oil swings hinge on U.S.–Russia/Gaza headlines and OPEC+ adjustments; base case remains loosening supply-demand balance.

7) Asia Economy & Corporates: Singapore Exports –4.6% · Australia’s Bluescope Profit Down 90%

• Key Points: Singapore July exports fell –4.6% YoY, below expectations. Australia’s Bluescope Steel reported a 90% plunge in annual profit (North America impairment).
• Impact: Asia’s manufacturing faces external demand headwinds. Resource/materials remain volatile from pricing, inventory, FX pressures.
• Outlook: Recovery hinges on inventory drawdowns and sustained U.S.–China “truce extension.” Firms should diversify destinations and revisit pricing pass-through strategies.

Wrap-up: Near-term Drivers & Practical Actions

• Key Drivers:
  ① Ukraine talks in Washington
  ② China’s Taiwan comments & U.S.–China signaling
  ③ Seoul’s phased inter-Korean accord + U.S.–Korea drills
  ④ ESG capital tightening (Gaza-related)
  ⑤ Dollar strength + tariff expansion → inflation & corporate cost spillovers
  ⑥ Oil range drivers (U.S.–Russia/Gaza/OPEC+).

• Action Items:

  • Map tariff–FX–fuel sensitivities by product (price pass-through, alternative sourcing, inventory LT).
  • Pursue energy smoothing (long-term contracts + efficiency/BESS to absorb swings).
  • Strengthen ESG/human rights due diligence (disclosures, audits, internal checks).
  • Advance supply chain dual diversification: “China +1 / India +1.”

Reference Links (primary sources & data)

• Ukraine: Zelensky in Washington with EU leaders
  • Reuters: https://www.reuters.com/business/aerospace-defense/zelenskiy-flanked-by-europe-heads-washington-trump-presses-russia-deal-2025-08-18/
  • Reuters: Kharkiv drone attack casualties https://www.reuters.com/world/europe/russian-drone-attack-kills-seven-kharkiv-including-two-children-ukraine-says-2025-08-17/
• China–Taiwan
  • Reuters: Beijing on “peaceful unification” https://www.reuters.com/world/china/china-says-it-is-prepared-great-effort-towards-peaceful-reunification-with-2025-08-18/
• Korean Peninsula
  • Reuters: Seoul orders phased North–South pact implementation https://www.reuters.com/world/asia-pacific/south-koreas-lee-orders-partial-phased-implementation-existing-north-korea-pacts-2025-08-18/
  • Reuters: U.S.–Korea joint drills begin Aug. 18 (part deferred to Sept) https://www.reuters.com/world/asia-pacific/south-korea-us-conduct-major-joint-military-drills-starting-august-18-2025-08-07/
• Middle East/ESG
  • Reuters: Norway SWF excludes 6 firms over West Bank/Gaza <https://www.reuters.com/business/finance/norway-so