Category: 3. Business

Japan’s exports grew 4.2% in September, according to government data, on robust shipments to Asia that offset the decline to those destined for the U.S., which were impacted by President Donald Trump’s tariffs

TOKYO — TOKYO (AP) — Japan’s exports grew 4.2% in September, according to government data Wednesday, on robust shipments to Asia that offset a decline in exports to the U.S., which were impacted by President Donald Trump’s tariffs.

Japan’s exports to Asia jumped 9.2% last month compared to the same period a year earlier, according to Japanese Ministry of Finance data.

Exports to the U.S. dropped 13.3%, marking the sixth straight month of on-year declines, while those to China surged 5.8% compared to last year.

Auto shipments to the U.S. dropped 24.2% in September. Automakers like Toyota Motor Corp. are pillars of Japan’s economy.

Japan’s imports edged up 3.3% in September overall, growing 6% in Asia, including a 9.8% rise in imports from China.

The findings come a day after Sanae Takaichi was chosen in a parliamentary vote as the nation’s prime minister, becoming the first woman to lead Japan.

She is known for nationalist-leaning conservative views but is also seen as a proponent of bigger public spending, which has sent share prices generally rising in Tokyo in recent sessions.

Takaichi has also promised higher wages, as well as looser monetary policy, which would favor a weak Japanese yen. That would be a boon for the nation’s giant exporters by raising the value of overseas earnings when converted into yen.

Takaichi faces an uphill battle in realizing her policies because the ruling Liberal Democratic Party, even with coalition partners, does not have a majority in either house of parliament. Her own party remains divided.

Trump, who is expected to visit Japan later this month to meet with Takaichi, announced a trade framework with Japan in July that placed a 15% tax on Japanese goods.

At that time, Japan promised to invest $550 billion into the U.S. and open its economy more to American automobiles and rice. The 15% tax on imported Japanese goods was a significant drop from the 25% rate that Trump had said earlier.

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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama

Merger of equals to create new global critical minerals champion and unlock substantial value

Vancouver, B.C. – Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (Teck) today announced its unaudited third quarter results for 2025. 

“The merger of equals between Teck and Anglo American announced this quarter is a unique opportunity to create a global leader in critical minerals and a top five copper producer,” said Jonathan Price, President and CEO. “The combination will unlock significant value for shareholders through integration of Quebrada Blanca and Collahuasi and meaningful corporate synergies, offering a compelling high-quality, copper-focused investment opportunity. In addition, we completed a Comprehensive Operational Review to ensure our business plans are grounded in demonstrated performance. Our focus moving forward is on disciplined execution and completion of the merger.”

Highlights

• On September 9, 2025, Teck and Anglo American plc announced an agreement to combine the two companies in a merger of equals (the Merger) to form the Anglo Teck group (“Anglo Teck”), a global critical minerals champion headquartered in Canada. Both Anglo American and Teck believe the Merger will be highly attractive for their respective shareholders and stakeholders, enhancing portfolio quality, financial and operational resilience and strategic positioning.
• The Merger is expected to deliver annual pre-tax synergies of approximately US$800 million, with approximately 80% expected to be realized on a run-rate basis by the end of the second year following completion. Anglo Teck will also work with stakeholders to optimize the value of the adjacent Collahuasi and Quebrada Blanca assets to realize an annual average underlying EBITDA ¹ uplift of US$1.4 billion (100% basis).
• On October 7, 2025, we announced completion of our Comprehensive Operational Review and Updated Outlook, with an update on the progress of the Quebrada Blanca (QB) Action Plan. 
• Adjusted EBITDA¹ of $1.2 billion in Q3 2025 was $185 million higher than the same period last year, primarily driven by higher copper and zinc prices and increased by-product revenues. Our profit from continuing operations before taxes was $289 million in Q3 2025. 
• Adjusted profit from continuing operations attributable to shareholders¹ was $372 million, or $0.76 per share, in Q3 2025. Our profit from continuing operations attributable to shareholders was $281 million or $0.58 per share. 
• Our strong balance sheet provides resilience to market uncertainty, with liquidity as at October 21, 2025 of $9.5 billion, including $5.3 billion of cash. 
• Our copper segment generated gross profit before depreciation and amortization¹ of $740 million in the third quarter compared to $604 million a year ago, primarily driven by higher copper prices (averaging US$4.44 per pound in the third quarter) and significantly lower smelter processing charges. Copper sales of 110,300 tonnes in Q3 2025 were similar to year ago. Gross profit from our copper business was $355 million in the third quarter.
• Our zinc segment generated gross profit before depreciation and amortization¹ of $454 million in the third quarter, compared to $358 million a year ago. The increase was primarily due to improved profitability at our Trail Operations and strong zinc sales volumes from Red Dog of 272,800 tonnes following a successful shipping season, which exceeded our previously disclosed guidance range of 200,000 to 250,000 tonnes. Gross profit from our zinc business was $305 million in the third quarter. 

^{Note: 1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.}

Financial Summary Q3 2025

Financial Metrics (CAD$ in millions, except per share data)	Q3 2025	Q3 2024
Revenue	$ 3,385	$ 2,858
Gross profit	$ 660	$ 478
Gross profit before depreciation and amortization1	$ 1,194	$ 962
Profit (loss) from continuing operations before taxes	$ 289	$ (759)
Adjusted EBITDA1	$ 1,171	$ 986
Profit (loss) from continuing operations attributable to shareholders	$ 281	$ (748)
	$ 372	$ 314
Basic earnings (loss) per share from continuing operations	$ 0.58	$ (1.45)
Diluted earnings (loss) per share from continuing operations	$ 0.57	$ (1.45)
Adjusted basic earnings per share from continuing operations1	$ 0.76	$ 0.61
Adjusted diluted earnings per share from continuing operations1	$ 0.76	$ 0.60

^{Note 1:This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.}

Key Updates

Teck and Anglo American plc Merger of Equals

• On September 9, 2025, we announced that we had entered into an arrangement agreement with Anglo American plc with respect to the Merger between Anglo American plc and Teck to form Anglo Teck, a global critical minerals champion and top five global copper producer, headquartered in Canada and expected to offer investors more than 70% exposure to copper.
• Both Anglo American plc and Teck believe the Merger will be highly attractive for both companies’ shareholders and stakeholders, enhancing portfolio quality, resilience and strategic positioning. Bringing together the strengths of both companies, Anglo Teck will leverage proven capabilities in technical and operational excellence, sustainability, product marketing and project execution to deliver significant, value-accretive growth through the cycle.
• The Merger is expected to deliver annual pre-tax synergies of approximately US$800 million by the end of the fourth year following completion of the transaction, with approximately 80% expected to be realized on a run-rate basis by the end of the second year following completion, driven by economies of scale, operational efficiencies, and commercial and functional excellence. Anglo Teck will also work with key stakeholders and partners in Collahuasi and Quebrada Blanca to optimize the value of these adjacent assets to realize US$1.4 billion (100% basis) of annual underlying EBITDA¹ uplift on an average pre-tax annual basis from 2030-2049, primarily through operational integration and optimization of Collahuasi and Quebrada Blanca. This will build on Anglo American’s success with similar adjacency partnerships in Brazil and elsewhere in Chile. 
• Completion of the transaction is subject to a number of customary conditions, including applicable court, shareholder and regulatory approvals. The Merger is expected to close within 12-18 months from announcement. 

QB Action Plan Update and Q3 Performance

• Production at QB continues to be constrained by the pace of development of the tailings management facility (TMF), requiring downtime in the concentrator to manage the rate of tailings rise. Our priority remains enabling safe, unconstrained production by raising the crest height of the dam. This is being delivered through construction of additional rock benches while continuing to progress efforts to improve sand drainage to support construction of the sand dam. 
• Ultimately, a sand wedge will be constructed using hydraulically placed sand, which will enable steady-state TMF operation. While sand currently being produced meets design specifications, slow drainage caused by the presence of ultra-fines has delayed progress in development of the sand wedge. As a result, the mechanical construction of rock benches continues to be required, which has led to additional downtime through 2025, particularly in Q3, and is expected to result in incremental downtime in 2026, as reflected in our 2026 annual production guidance for QB. It is currently expected that from 2027 onwards, the TMF development should no longer be a constraint on throughput levels.
• Significant work has been undertaken through 2025 to improve sand drainage times with some improvement realized to date. Further progress is needed to reach design targets, and two key initiatives were advanced in Q3 2025:
• • Ultra-fines removal: Test work in collaboration with cyclone manufacturers and third-party experts has shown positive results in improving sand drainage through the removal of ultra-fines. As previously disclosed, we are modifying the cyclone facility this quarter to incorporate alternative technologies designed to remove ultra-fine material. 
  • Refinement of sand placement techniques: Improvements to paddock design, and sand placement and drying, are also being implemented to enhance drainage efficiency. 
• Q3 2025 copper production at QB was 39,600 tonnes, which was 12,900 tonnes lower than the same period last year. As outlined above, ongoing TMF development has constrained production through 2025 resulting in additional downtime of the concentrator, particularly in Q3 2025. September production was 5,800 tonnes, impacted by 20 days of downtime required to raise the tailings dam crest.
• Molybdenum production at QB was 480 tonnes in the third quarter as ramp-up of the molybdenum plant continued. Molybdenum production was constrained by downtime in the concentrator due to ongoing TMF development work, outlined above. 
• The shiploader at QB’s port facility is under repair, as previously disclosed, and is expected to return to service in the first quarter of 2026. The outage is not expected to impact production as we have been shipping concentrate through our alternative port arrangements and have maximized shipments to local customers. 
• On October 7, 2025, we announced updates to our previously disclosed guidance. Our annual 2025 copper production for QB is expected to be 170,000 to 190,000 tonnes and our annual molybdenum production for QB is expected to be 1,700 to 2,500 tonnes. QB net cash unit costs¹ for 2025 are expected to be between US$2.65 – $3.00 per pound.

Safety and Sustainability Leadership 

• Our High-Potential Incident (HPI) Frequency rate remains low at 0.06 for the nine months ended September 30, 2025, trending 50% below the 2024 annual rate of 0.12.

Guidance 

• On October 7, 2025, we announced completion of our Comprehensive Operational Review and Updated Outlook, which resulted in revisions to our annual production guidance for QB and Highland Valley Copper for 2025-2028, Red Dog for 2026-2028, and Trail for 2026. Further, as a result of changes to our production guidance, we provided updated guidance for 2025 annual net cash unit costs¹ for QB and our copper segment and provided 2026 annual net cash unit cost¹ guidance for our copper and zinc segments. 
• here have been no changes to our guidance disclosed on October 7, 2025.  
• Our guidance is outlined in summary below and our usual guidance tables, including three-year production guidance, can be found on pages 28–31 of Teck’s third quarter results for 2025 at the link below.

^{Note: 1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.}

2025 Guidance – Summary	Current
Production Guidance
Copper (000’s tonnes)	415 – 465
Zinc (000’s tonnes)	525 – 575
Refined zinc (000’s tonnes)	190 – 230
Sales Guidance – Q4 2025
Red Dog zinc in concentrate sales (000’s tonnes)	125 – 140
Unit Cost Guidance
Copper net cash unit costs (US$/lb.)1	2.05 – 2.30
Zinc net cash unit costs (US$/lb.)1	0.45 – 0.55

^{Note: This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.}

All dollar amounts expressed in this news release are in Canadian dollars unless otherwise noted. 
 
Click here to view Teck’s full third quarter results for 2025. 

WEBCAST

Teck will host an Investor Conference Call to discuss its Q3/2025 financial results at 11:00 AM Eastern time, 8:00 AM Pacific time, on October 22, 2025. A live audio webcast of the conference call, together with supporting presentation slides, will be available at our website at www.teck.com. The webcast will be archived at www.teck.com.

REFERENCE 
 
Emma Chapman, Vice President, Investor Relations: +44 207.509.6576 
Dale Steeves, Director, External Communications: +1 236.987.7405 

USE OF NON-GAAP FINANCIAL MEASURES AND RATIOS

Our annual financial statements are prepared in accordance with IFRS ® Accounting Standards as issued
by the International Accounting Standards Board (IASB). Our interim financial results are prepared in
accordance with IAS 34, Interim Financial Reporting (IAS 34). This document refers to a number of non-
GAAP financial measures and non-GAAP ratios, which are not measures recognized under IFRS
Accounting Standards and do not have a standardized meaning prescribed by IFRS Accounting Standards
or by Generally Accepted Accounting Principles (GAAP) in the United States.

The non-GAAP financial measures and non-GAAP ratios described below do not have standardized
meanings under IFRS Accounting Standards, may differ from those used by other issuers, and may not be
comparable to similar financial measures and ratios reported by other issuers. These financial measures
and ratios have been derived from our financial statements and applied on a consistent basis as
appropriate. We disclose these financial measures and ratios because we believe they assist readers in
understanding the results of our operations and financial position and provide further information about our
financial results to investors. These measures should not be considered in isolation or used as a substitute
for other measures of performance prepared in accordance with IFRS Accounting Standards.

Adjusted profit from continuing operations attributable to shareholders – For adjusted profit from
continuing operations attributable to shareholders, we adjust profit from continuing operations attributable
to shareholders as reported to remove the after-tax effect of certain types of transactions that reflect
measurement changes on our balance sheet or are not indicative of our normal operating activities.

EBITDA – EBITDA is profit before net finance expense, provision for income taxes, and depreciation and
amortization.

Adjusted EBITDA – Adjusted EBITDA is EBITDA before the pre-tax effect of the adjustments that we
make to adjusted profit from continuing operations attributable to shareholders as described above.
Adjusted profit from continuing operations attributable to shareholders, EBITDA and Adjusted EBITDA
highlight items and allow us and readers to analyze the rest of our results more clearly. We believe that
disclosing these measures assists readers in understanding the ongoing cash-generating potential of our
business in order to provide liquidity to fund working capital needs, service outstanding debt, fund future
capital expenditures and investment opportunities, and pay dividends.

Adjusted basic earnings per share from continuing operations – Adjusted basic earnings per share
from continuing operations is adjusted profit from continuing operations attributable to shareholders
divided by average number of shares outstanding in the period.

Adjusted diluted earnings per share from continuing operations – Adjusted diluted earnings per
share from continuing operations is adjusted profit from continuing operations attributable to shareholders
divided by average number of fully diluted shares in a period.

Gross profit before depreciation and amortization – Gross profit before depreciation and amortization
is gross profit with depreciation and amortization expense added back. We believe this measure assists us
and readers to assess our ability to generate cash flow from our reportable segments or overall
operations.

Total cash unit costs – Total cash unit costs for our copper and zinc operations includes adjusted cash
costs of sales, as described below, plus the smelter and refining charges added back in determining
adjusted revenue. This presentation allows a comparison of total cash unit costs, including smelter
charges, to the underlying price of copper or zinc in order to assess the margin for the mine on a per unit
basis.

Net cash unit costs – Net cash unit costs of principal product, after deducting co-product and by-product
margins, are also a common industry measure. By deducting the co- and by-product margin per unit of the
principal product, the margin for the mine on a per unit basis may be presented in a single metric for
comparison to other operations.

Adjusted cash cost of sales – Adjusted cash cost of sales for our copper and zinc operations is defined
as the cost of the product delivered to the port of shipment, excluding depreciation and amortization
charges, any one-time collective agreement charges or inventory write-down provisions and by-product
cost of sales. It is common practice in the industry to exclude depreciation and amortization, as these
costs are non-cash, and discounted cash flow valuation models used in the industry substitute
expectations of future capital spending for these amounts.

 

Profit (Loss) from Continuing Operations Attributable to Shareholders and Adjusted Profit from
Continuing Operations Attributable to Shareholders

(CAD$ in millions)	Three months ended  September 30		Nine months ended  September 30
	2025	2024	2025	2024
	$ 281	$ (748)	$ 857	$ (852)
Add (deduct) on an after-tax basis:
Asset impairment	—	828	—	828
QB variable consideration to IMSA and Codelco	34	(33)	(16)	9
Environmental costs	33	15	31	9
Share-based compensation	13	26	33	67
Commodity derivatives	(36)	(9)	(59)	(36)
Foreign exchange losses	(10)	41	15	71
Tax items	—	203	(82)	229
Other	57	(9)	83	48
Adjusted profit from continuing operations attributable to shareholders	$ 372	$ 314	$ 862	$ 373
Basic earnings (loss) per share from continuing operations	$ 0.58	$ (1.45)	$ 1.73	$ (1.64)
Diluted earnings (loss) per share from continuing operations	$ 0.57	$ (1.45)	$ 1.72	$ (1.64)
Adjusted basic earnings per share from continuing operations	$ 0.76	$ 0.61	$ 1.74	$ 0.72
Adjusted diluted earnings per share from continuing operations	$ 0.76	$ 0.60	$ 1.73	$ 0.71

 

Reconciliation of Basic Earnings (Loss) per share from Continuing Operations to Adjusted Basic
Earnings per share from Continuing Operations

(Per share amounts)	Three months ended  September 30,		Nine months ended  September 30,
	2025	2024	2025	2024
Basic earnings (loss) per share from continuing operations	$ 0.58	$ (1.45)	$ 1.73	$ (1.64)
Add (deduct) on an after-tax basis:
Asset impairment	—	1.60	—	1.60
QB variable consideration to IMSA and Codelco	0.07	(0.06)	(0.03)	0.01
Environmental costs	0.07	0.03	0.06	0.02
Share-based compensation	0.03	0.05	0.07	0.13
Commodity derivatives	(0.07)	(0.02)	(0.12)	(0.07)
Foreign exchange losses	(0.02)	0.08	0.03	0.14
Tax items	—	0.39	(0.16)	0.44
Other	0.10	(0.01)	0.16	0.09
	$ 0.76	$ 0.61	$ 1.74	$ 0.72

 

Reconciliation of Diluted Earnings (Loss) per share from Continuing Operations to Adjusted
Diluted Earnings per share from Continuing Operations

(Per share amounts)	Three months ended  September 30,		Nine months ended  September 30,
	2025	2024	2025	2024
Diluted earnings (loss) per share from continuing operations	$ 0.57	$ (1.45)	$ 1.72	$ (1.64)
Add (deduct) on an after-tax basis:
Asset impairment	—	1.59	—	1.58
QB variable consideration to IMSA and Codelco	0.07	(0.06)	(0.03)	0.02
Environmental costs	0.07	0.03	0.06	0.02
Share-based compensation	0.03	0.05	0.07	0.13
Commodity derivatives	(0.07)	(0.02)	(0.12)	(0.07)
Foreign exchange losses	(0.02)	0.08	0.03	0.14
Tax items	—	0.39	(0.16)	0.44
Other	0.11	(0.01)	0.16	0.09
Adjusted diluted earnings per share from continuing operations	$ 0.76	$ 0.60	$ 1.73	$ 0.71

 

Reconciliation of EBITDA and Adjusted EBITDA

(CAD$ in millions)	Three months ended  September 30,		Nine months ended  September 30,
	2025	2024	2025	2024
Profit (loss) from continuing operations before taxes	$ 289	$ (759)	$ 864	$ (974)
Net finance expense	175	153	469	578
Depreciation and amortization	554	498	1,344	1,203
EBITDA	1,018	(108)	2,677	807
Add (deduct):
Asset impairment	—	1,053	—	1,053
QB variable consideration to IMSA and Codelco	58	(55)	(26)	0.14
Environmental costs	40	20	42	8
Share-based compensation	17	34	41	86
Commodity derivatives	(49)	(13)	(81)	(50)
Foreign exchange (gains) losses	(9)	56	16	89
Other	96	(1)	151	91
Adjusted EBITDA	$ 1,171	$ 986	$ 2,820	$ 2,098

 

Reconciliation of Gross Profit Before Depreciation and Amortization

(CAD$ in millions)	Three months ended  September 30,		Nine months ended  September 30,
	2025	2024	2025	2024
Gross profit	$ 660	$ 478	$ 1667	$ 1,065
Depreciation and amortization	534	484	1288	1,155
Gross profit before depreciation and amortization	$ 1,194	$ 962	$ 2,955	$ 2,220
Reported as:
Copper
Quebrada Blanca	$ 178	$ 178	$ 580	$ 462
Highland Valley Copper	189	89	564	371
Antamina	295	287	731	763
Carmen de Andacollo	78	48	240	69
Other	—	2	2	4
	740	604	2,117	1,669
Zinc
Trail Operations	54	26	176	(3)
Red Dog	390	333	646	548
Other	10	(1)	16	6
	454	358	838	551
Gross profit before depreciation and amortization	$ 1,194	$ 962	$ 2,955	$ 2,220

 

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as forward-looking statements). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “anticipate”, “can”, “could”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “would”, “project”, “predict”, “likely”, “potential”, “should”, “believe” and similar expressions is intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These statements speak only as of the date of this news release.

These forward-looking statements include, but are not limited to, statements concerning: our focus and strategy, including being a pure-play energy transition metals company; anticipated global and regional supply, demand and market outlook for our commodities; our business, assets, and strategy going forward, including with respect to future and ongoing project development; our ability to complete the merger with Anglo American, including timing of completion and our ability to receive applicable approvals; our expectations with respect to the merger with Anglo American; our ability to achieve corporate synergies with Anglo American and potential synergies between QB and Collahuasi; our ability to execute our copper growth strategy in a value accretive manner; the timing and format of any cash returns to shareholders; our expectations regarding cost, timing and completion of HVC MLE; our expectations regarding our Comprehensive Operational Review and updated outlook, including any progress of the QB Action Plan; our expectations regarding cost, timing and completion of TMF development initiatives and installation of remaining permanent tailings infrastructure and water management at our QB operations; the occurrence and length of any potential downtime at QB; our ability to raise improve and support construction of the sand dam, including the construction of a sand wedge; our expectations regarding improved sand drainage, including paddock design and sand placement; the results of third-party expert recommendations for our QB Action Plan; our expectations with respect to improved recoveries at QB and achieve design rates in the mine, concentrator and molybdenum plant; the continued ramp-up to consistent production and future optimization and debottlenecking of our QB operations; the timing of the restart of the shiploader at the QB port facility; our expectations with respect to mitigation of potential production or shipping disruptions or increased costs related to the QB shiploader outage; our expectations with respect to continued availability of alternative port arrangements for QB; our expectations with respect to the successful restart of the Carmen de Andacollo SAG mill and its ability to continue to operate as expected; our expectations with respect to Teck’s updated operating strategy and production at Trail; our expectations with respect to the production and sales volume at Red Dog; our expectations with respect to the occurrence, timing and length of required maintenance shutdowns and equipment replacement; expectations regarding inflationary pressures and our ability to manage controllable operating expenditures; the uncertainty surrounding the status of various worldwide tariffs and their impact on the mining industry; expectations with respect to the potential impact of any tariffs, countervailing duties or other trade restrictions, including the impact on trade flows, demand for our products and general economic conditions and our ability to manage our sale arrangements to minimize any impacts or maintain compliance with any exemptions provided; expectations with respect to execution of our copper growth strategy, including the timing and occurrence of any sanction decisions and prioritization and amount of planned growth capital expenditures; expectations regarding advancement of our copper growth portfolio projects, including advancement of study, permitting, execution planning, detailed engineering and design, risk mitigation, and advanced early works, community and Indigenous engagement, completion of updated cost estimates, tendering processes, and timing for receipt of permits related to QB optimization, QB Asset Expansion and the HVC MLE, San Nicolás, and Zafranal projects, as applicable; our expectations and results with respect to the royalties on our operations; expectations with respect to timing and outcome of the regulatory approvals process for our copper growth projects; expectations for copper growth capital expenditures to progress our medium- to long-term projects, including Galore Creek, Schaft Creek, NewRange, and NuevaUnion; our expectations regarding safety rates at our operations; expectations regarding our effective tax rate; expectations regarding after-tax impairments; liquidity and availability of borrowings under our credit facilities; requirements to post and our ability to obtain additional credit for posting security for reclamation at our sites; expectations for our general and administration and research and innovation costs and costs related to the enterprise resource planning system; profit and loss expectations; copper price market trends and expectations; our expectations relating to Teck’s buy back of shares and ability to continue to declare dividends; mineral grades; all guidance appearing in this document including but not limited to the production, sales, cost, unit cost, capital expenditure, capitalized stripping, operating outlook, and other guidance under the headings “Guidance” and “Outlook” and as discussed elsewhere in the various reportable segment sections; our expectations regarding inflationary pressures and increased key input costs; and expectations regarding the adoption of new accounting standards and the impact of new accounting developments.

These statements are based on a number of assumptions, including, but not limited to, assumptions disclosed elsewhere in this document and assumptions regarding general business and economic conditions, interest rates, commodity and power prices; the completion of the merger with Anglo American; completion of the QB Action Plan; the potential corporate synergies between Anglo American and Teck; acts of foreign or domestic governments and the outcome of legal proceedings, including expectations with respect to the claims for indemnification from NSC and Glencore in connection with the sale of the steelmaking coal business; the imposition of tariffs, import or export restrictions, or other trade barriers or retaliatory measures by foreign or domestic governments; the continued operation of QB in accordance with our expectations; our ability to advance TMF development initiatives as expected and the occurrence and length of any potential maintenance downtime; expectations with respect to the restart of the shiploader at QB; expectations with respect to availability of alternative port arrangements; expectations and assumptions with respect to HVC MLE capital cost estimate and expected project economics; the possibility that our business may not perform as expected or in a manner consistent with historical performance; the supply and demand for, deliveries of, and the level and volatility of prices of copper and zinc and our other metals and minerals, as well as steel, crude oil, natural gas and other petroleum products; the timing of the receipt of permits and other regulatory and governmental approvals for our development projects and other operations, including mine extensions; positive results from the studies on our expansion and development projects; our ability to secure adequate transportation, including rail and port services, for our products; our costs of production and our production and productivity levels, as well as those of our competitors; continuing availability of water and power resources for our operations; changes in credit market conditions and conditions in financial markets generally; the availability of funding to refinance our borrowings as they become due or to finance our development projects on reasonable terms; availability of letters of credit and other forms of financial assurance acceptable to regulators for reclamation and other bonding requirements; our ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; the availability of qualified employees and contractors for our operations, including our new developments and our ability to attract and retain skilled employees; the satisfactory negotiation of collective agreements with unionized employees; the impact of changes in Canadian-U.S. dollar, Canadian dollar-Chilean Peso and other foreign exchange rates on our costs and results; engineering and construction timetables and capital costs for our development and expansion projects; our ability to develop technology and obtain the benefits of technology for our operations and development projects; closure costs; environmental compliance costs; market competition; the accuracy of our mineral reserve and resource estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based; tax benefits and statutory and effective tax rates; the outcome of our copper, zinc and lead concentrate treatment and refining charge negotiations with customers; the resolution of environmental and other proceedings or disputes; our ability to obtain, comply with and renew permits, licenses and leases in a timely manner; and our ongoing relations with our employees and with our business and joint venture partners. 

Statements regarding the availability of our credit facilities are based on assumptions that we will be able to satisfy the conditions for borrowing at the time of a borrowing request and that the facilities are not otherwise terminated or accelerated due to an event of default. Assumptions regarding the costs and benefits of our projects include assumptions that the relevant project is constructed, commissioned and operated in accordance with current expectations. Expectations regarding our operations are based on numerous assumptions regarding the operations. Our Guidance tables include disclosure and footnotes with further assumptions relating to our guidance, and assumptions for certain other forward-looking statements accompany those statements within the document. Statements concerning future production costs or volumes are based on numerous assumptions regarding operating matters and on assumptions that demand for products develops as anticipated, that customers and other counterparties perform their contractual obligations, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, and that there are no material unanticipated variations in the cost of energy or supplies. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause actual results to vary materially. 

Factors that may cause actual results to vary materially include, but are not limited to, changes in commodity and power prices; changes in market demand for our products; changes in interest and currency exchange rates; acts of governments and the outcome of legal proceedings, including indemnification claims; ability for Teck to satisfy all conditions precedent for closing of the merger; ability for Teck to receive necessary approvals to complete the merger; costs related to the merger; the imposition of tariffs, import or export restrictions, or other trade barriers or retaliatory measures by foreign or domestic governments; inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources); operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of labour, materials and equipment); government action or delays in the receipt of government approvals; changes in royalty or tax rates; industrial disturbances or other job action; adverse weather conditions; unanticipated events related to health, safety and environmental matters; union labour disputes; political risk; social unrest; failure of customers or counterparties (including logistics suppliers) to perform their contractual obligations; changes in our credit ratings; unanticipated increases in costs to construct our development projects; difficulty in obtaining permits; inability to address concerns regarding permits or environmental impact assessments; changes in laws and mining regulations; and changes or further deterioration in general economic conditions. The amount and timing of capital expenditures is dependent upon, among other matters, being able to secure permits, equipment, supplies, materials and labour on a timely basis and at expected costs. Certain operations and projects are not controlled by us; schedules and costs may be adjusted by our partners, and timing of spending and operation of the operation or project is not in our control. Certain of our other operations and projects are operated through joint arrangements where we may not have control over all decisions, which may cause outcomes to differ from current expectations. Ongoing monitoring may reveal unexpected environmental conditions at our operations and projects that could require additional remedial measures. Production at our QB and Red Dog Operations may also be impacted by water levels at site. Sales to China may be impacted by general and specific port restrictions, Chinese regulation and policies, and normal production and operating risks. 

We assume no obligation to update forward-looking statements except as required under securities laws. Further information concerning risks, assumptions and uncertainties associated with these forward-looking statements and our business can be found in our Annual Information Form for the year ended December 31, 2024 filed under our profile on SEDAR+ (www.sedarplus.ca) and on EDGAR (www.sec.gov) under cover of Form 40-F, as well as subsequent filings that can also be found under our profile.

Scientific and technical information in this quarterly report regarding our material properties was reviewed, approved and verified by Jason Sangha, P.Eng., Vice President, Technical & Planning, an officer of Teck and a Qualified Person as defined under National Instrument 43-101.

25-26-TR

The Norwegian Group reported the strongest quarterly results in group history in the third quarter, with a profit before tax (EBT) of NOK 2,891 million an operating profit (EBIT) of NOK 3,071 million. The quarter was characterised by several important milestones, including the first-ever dividend, paid in August, and the exercise of a purchase option to acquire 30 additional new Boeing aircraft.

During the third quarter, the Norwegian Group recorded an operating profit (EBIT) of NOK 3,071 million. The operating margin was 25.1 percent. The liquidity position decreased to NOK 10.5 billion at the end of the quarter.

“We are very pleased to once again report a record quarter. In August, we paid our first-ever dividend of NOK 0.90 per share to approximately 75,000 shareholders. It has been a strong quarter overall, and I would like to thank all my colleagues in both Widerøe and Norwegian for their outstanding efforts during the busiest months of the year. Widerøe’s record-breaking passenger numbers also deserve recognition, which in September reached an all-time high in the company’s more than 90-year long history,” said Geir Karlsen, CEO of Norwegian.

In the third quarter, the Norwegian Group had 8.41 million passengers, of which 7.28 million were passengers of Norwegian and 1.12 million of Widerøe. The quarterly load factor for Norwegian was 88.3 percent, up 0.3 percentage points from last year, while Widerøe had a load factor of 77.5 percent, down 0.6 percentage points. Capacity increased 2 percent and 3 percent for Norwegian and Widerøe respectively. The quarter also held solid operational performance from both airlines. Widerøe stood out with 98.2 percent of scheduled flights taking place and a punctuality of 91.8 percent. Norwegian had a punctuality of 77.8 percent, up 3.6 percentage points from last year, and 99.3 percent of scheduled flights taking place.

Fleet renewal and Denmark on the rise

During the quarter, Norwegian expanded the existing Boeing order by exercising an option to purchase 30 additional Boeing 737 MAX 8 aircraft, increasing the total firm order to 80 aircraft.

“By exercising the Boeing purchase option, we maintain flexibility while reinforcing our commitment to operating one of Europe’s most modern and fuel-efficient fleets. This is an important step in our ongoing fleet renewal programme, and we are very pleased to further strengthen our long-term partnership with Boeing,” said Geir Karlsen.

October was an important month in Denmark, marked by several positive developments. The month began strongly with the announcement of ten new international routes from Billund airport. On the same day, Norwegian was named “Best European Airline” at the Danish Travel Awards. A few days later, Norwegian won the Danish government’s tender for a domestic route aimed at reducing climate impact. Under this agreement, 93 percent of Norwegian’s flights between Aalborg and Copenhagen will operate using at least 40 percent sustainable aviation fuel (SAF) from March next year. The project is expected to save approximately 6,700 tonnes of CO2 on a life-cycle basis.

Well prepared for the winter season

For the upcoming winter months, Norwegian has reduced the monthly capacity by between 25 to 40 percent, compared to the October capacity. This is to better align with demand during winter and optimise performance in the low season.

“We have an attractive route network in the winter season, well tailored to our customers’ needs. Booking trends are looking encouraging, and our customers are booking their flights further in advance this year compared to previous years. We have therefore sold more tickets this year, compared to the same time last year, with reduced capacity. This bodes well for a busy winter season with high load factors,” said Geir Karlsen.

Despite growing interest in neuroimaging biomarkers for idiopathic Parkinson’s disease (IPD), a critical gap persists in identifying accessible, non-invasive tools for early diagnosis and monitoring. We aimed to establish MRS as a practical, reproducible, and clinically applicable biomarker tool in IPD diagnosis and progression tracking. Proton magnetic resonance spectroscopy (MRS) can detect neurochemical alterations in vivo, yet most studies are limited by small cohorts, single-voxel methods, or high-field MRI dependence [11]. The novelty of our study lies in its use of multi-voxel MRS on a widely available 1.5 Tesla scanner in a relatively large cohort, with targeted assessment of the substantia nigra—a region often underrepresented due to technical challenges. By correlating metabolite ratios with detailed clinical severity scales.

Regarding sociodemographic characteristics, our study demonstrated no significant differences between patients and controls concerning age (61.45 ± 9.82 vs. 64.37 ± 10.61 years; p = 0.09) or sex distribution (77.5% vs. 71.8% male; p = 0.44). This is consistent with the previous epidemiological studies that reported similar demographic distributions in Parkinson’s disease cohorts, suggesting that age and sex matching were successful in avoiding confounding effects [12]. However, we found a significantly higher proportion of patients with occupational exposure to agricultural fields compared to controls (p = 0.001), supporting the hypothesis that environmental toxins may contribute to disease risk. This aligns with the findings of another study, which emphasized environmental and lifestyle influences on Parkinson’s disease, especially in rural populations. Thus, our study adds further evidence that environmental exposure should be considered in disease risk assessment, particularly in resource-limited regions [13].

Regarding radiological findings, our study revealed significant neurometabolic alterations in IPD patients compared to controls, with decreased NAA/Cr and NAA/Cho ratios and elevated Cho/Cr ratios across the caudate, lentiform nuclei, and substantia nigra. These findings are consistent with earlier reports that MRS can differentiate Parkinson’s patients from healthy individuals [13, 14]. For example, Shoeibi et al. [15] demonstrated similar metabolic alterations, particularly reduced NAA/Cr in the substantia nigra, reinforcing the value of spectroscopy as a biomarker of neuronal loss.

Additionally, Lucetti et al. [16] demonstrated cortical NAA/Cr reduction in newly diagnosed patients, which supports the notion that metabolic alterations occur early in disease, though they localized changes outside the basal ganglia due to technical artifacts. Taken together, our results confirm the reproducibility of MRS findings in IPD, while highlighting that methodological differences across studies can influence observed regional patterns.

Our findings also align with Amartumur et al. [3] and Das and Ramteke [4], who emphasized the role of metabolic stress, mitochondrial dysfunction, and neurodegeneration in IPD pathophysiology, processes that MRS captures indirectly through metabolite shifts. However, Marino et al. [17] reported no significant differences in NAA/Cr or NAA/Cho between IPD patients and controls in the lentiform nucleus, findings that contradict ours. This discrepancy may stem from their smaller sample size, differences in voxel placement, or technical limitations of 1.5 T acquisition. By contrast, our relatively larger cohort and multi-voxel approach provided stronger statistical power to detect subtle metabolic changes, particularly in the substantia nigra.

Regarding correlation with disease severity, in our study, NAA/Cr and NAA/Cho ratios correlated negatively and strongly with UPDRS scores and Hoehn and Yahr stage, while Cho/Cr ratios correlated positively with disease severity. For instance, left substantia nigra NAA/Cho showed a strong negative correlation (r = –0.823, p < 0.001), confirming that metabolite alterations mirror clinical disability. This is consistent with the previous findings. Marino et al. [17] observed negative correlations between NAA/Cr and UPDRS, although their results did not reach significance in smaller subgroups, emphasizing the need for larger cohorts such as ours.

Similarly, Cao et al. [18] also reported diminished substantia nigra NAA/Cr levels in drug-withdrawn PD patients, supporting its role as a progression marker. Our results diverge from some earlier reports. Another study found no differences in basal ganglia metabolite ratios in IPD, suggesting that MRS was more sensitive to atypical Parkinsonism (MSA, PSP). However, their patient numbers were limited and lacked detailed correlation with UPDRS subscales. By contrast, our study’s novelty lies in comprehensive correlation across all UPDRS domains, providing robust evidence that metabolite changes not only distinguish patients from controls but also quantify disease burden. Mazuel et al. [19] further showed that acute levodopa administration could modulate putaminal metabolites, suggesting that treatment status is a confounding factor, which we partially addressed but could not fully eliminate, given that only one of our patients was drug-naïve.

Regarding correlation with disease duration, most radiological markers in our study showed weak or no correlation with disease duration, except for right substantia nigra NAA/Cho, which correlated negatively (r = –0.304, p = 0.010). This suggests that metabolite decline may occur selectively in specific regions over time, independent of clinical staging. Similar results were reported by another study, which observed that while cross-sectional metabolite differences were limited, correlations with disease severity emerged in patients with longer disease duration. In contrast, Clarke and Lowry [14] emphasized that metabolite reduction was more apparent in atypical Parkinsonian syndromes, highlighting the complexity of disease progression markers. Our findings thus support the hypothesis that MRS can capture region-specific neurodegeneration over time, although longitudinal follow-up is required to confirm progressive metabolic decline.

This study presents several notable strengths. First, the sample size is relatively robust for MRS-based research in Parkinson’s disease, including 71 well-characterized IPD patients and an equally matched control group. Second, the study employed a multi-voxel magnetic resonance spectroscopy approach, allowing for comprehensive metabolic assessment across key subcortical regions, including the substantia nigra, which is often underrepresented in spectroscopy due to technical challenges. Third, the inclusion of detailed clinical correlation using the full Unified Parkinson’s Disease Rating Scale and Hoehn and Yahr scales adds depth to the interpretation of magnetic resonance spectroscopy findings. Finally, the study was conducted using a 1.5 Tesla magnetic resonance imaging scanner—a modality widely available in clinical practice—thereby enhancing the external validity and real-world applicability of the results.

Despite its contributions, this study has several limitations that should be acknowledged. One significant limitation is the use of a 1.5 T magnetic resonance imaging scanner, which offers lower spectral resolution compared to 3 T or 7 T systems, possibly limiting the accuracy of metabolite quantification. Additionally, the majority of participants were already receiving dopaminergic therapy, and only one patient was drug-naïve, which introduces the potential for medication-induced alterations in metabolite levels. Furthermore, the cross-sectional design of the study limits the ability to assess causality or monitor changes over time. The study population was also geographically limited, with a predominance of rural patients, which may impact generalizability. Finally, the study did not evaluate longitudinal clinical outcomes or therapeutic responses, which would be essential for establishing the prognostic value of magnetic resonance spectroscopy biomarkers.

As Javier Milei looks to contain a run on the peso ahead of critical midterm elections, Argentina’s libertarian president has turned to Washington for help. 

Donald Trump’s administration, eager to support a political ally, has obliged with a series of unusual manoeuvres, led by Treasury secretary Scott Bessent, aimed at supporting the peso and Milei’s troubled government. 

“We do not want another failed state in Latin America, and a strong, stable Argentina as a good neighbour is explicitly in the strategic interest of the United States,” Bessent wrote on X on Tuesday.

But the US intervention leaves it exposed to a volatile economic situation and has begun to stir unease among American voters.

What happened to Argentina? 

Milei’s government fell into crisis last month after a landslide loss at local elections in Buenos Aires province, where almost 40 per cent of Argentines live, casting doubt on the level of support for his free market reforms. 

A run on the peso forced the government to burn through a big chunk of its scarce hard currency reserves, raising expectations that it would have to abandon its exchange rate band.

An abrupt forced devaluation would have endangered Argentina’s macroeconomic stability just before a critical midterm election on October 26, where Milei needs to expand his tiny minority in congress in order to continue his economic agenda. 

What has the US done to help so far and why?

In a bid to support what it sees as a politically like-minded ally, the US Treasury has taken the highly unusual step of intervening to prop up the peso and provide financing to the Argentine government. 

Since October 9, Washington has made three direct purchases of pesos totalling roughly $400mn, according to Argentine economists’ estimates, although neither government has confirmed the amount. 

In addition, Argentina’s central bank said on Monday it had signed a $20bn “exchange rate stabilisation” agreement with the Treasury. 

While few specifics have been shared, the arrangement will also see the US tap its Exchange Stabilization Fund to trade dollars for pesos, providing dollar liquidity to the cash-strapped Latin American economy.

Will Washington do more?  

Last week Bessent said the Treasury was also in the process of arranging a $20bn loan package with capital from private banks and sovereign wealth funds to help Argentina pay down its debt. 

He described the proposal as “a private-sector solution to Argentina’s upcoming debt payments”. But details of the arrangement — and the extent of the US government’s involvement — remain unclear.

“There’s a remarkable lack of transparency about what’s going on,” said Mark Sobel, a former Treasury official and US chair of the Official Monetary and Financial Institutions Forum.

“Part of me thinks that they’re just throwing a lot of big numbers and ideas out there to try and create an announcement effect to get the Argentines past the elections.”

Has it helped Argentina? 

The US support has partially calmed Argentina’s market turmoil. Yields on Argentine debt, which move inversely to prices, had reached 14.6 percentage points above comparable US Treasuries before Bessent first proposed the financial lifeline. The spread has since fallen to 10.5 percentage points, as investors see Washington’s support reducing default risk.

But the interventions have failed to halt the run on the peso, which fell to a record low of 1,489 per dollar on Tuesday, close to the lower limit of its exchange rate band of 1,491 pesos per dollar.

Analysts say local investors doubt Milei will be able to keep the peso at its current level after the elections, with or without US support. “The number of dollars deposited in Argentine banks has reached a record high as people and businesses dollarise their savings,” said Nery Persichini, lead researcher at broker GMA Capital.  

Trump added to the uncertainty last week, when he said at a press conference that the US “would not be generous with Argentina” if Milei lost the upcoming elections. Bessent later said the US support was contingent on Argentina continuing “robust policies” rather than the poll result.

What could go wrong? 

If Milei’s La Libertad Avanza party fares poorly in the midterm elections — winning only about 30 per cent of votes or less than the main leftwing Peronist opposition party for example — pressure on the peso would likely increase, forcing Milei to devalue the currency. 

It is unclear how far the peso could fall in that scenario, with investors sceptical of the Milei government’s ability to pass the reforms needed to improve Argentina’s weak and unstable economy.

The country’s sovereign bond prices would also likely continue to drop, making it harder for the government to refinance some $17bn in dollar-denominated debt coming due next year.

Even if the libertarians do well, economists say Milei may have to devalue the peso and introduce a more flexible currency regime that allows Argentina to rebuild its hard currency reserves.

“The current exchange rate scheme is on its last legs,” said Fabio Rodriguez, a director at M&R financial consultancy in Buenos Aires. “The market will not take it well if the government attempts to use US money to sustain an artificially strong peso. Investors want Argentina to use the aid as a base to make swift changes.”

The US, meanwhile, faces exposure to potential losses on its currency purchases and risks being left on the hook providing a long-term credit line to Argentina, which would reduce its flexibility in the case of a US financial crisis.

There is also the risk of a domestic political backlash, with the move already triggering concern among some of Trump’s core voters, who see it as at odds with the president’s America First doctrine. 

 

Pop Mart, the maker of the hugely popular Labubu dolls, says its sales have surged after the launch of mini versions of the monster-themed toys in August.

The Chinese firm says its global revenue for the three months to the end of September jumped by about 250% compared to a year earlier.

Sales outside of China helped drive the increase with revenue in America up by more than 1,200%, while in Europe they rose by over 700%.

The figures build on a recent streak of strong sales for Pop Mart. Its shares gained more than 5.5% in Hong Kong on Thursday, giving it a stock market value of about $45.5bn (£34bn).

Pop Mart is best known for selling toys in “blind boxes” – a type of packaging that conceals its contents until it is opened. The marketing method has been criticised for encouraging gambling-like behaviour and compulsive buying.

Collectors have been obsessed with Labubus – the fictional elf-like creatures with a row of jagged teeth – which have sparked long queues in shops worldwide.

Labubu has taken off, especially in the US, thanks to celebrity endorsements by including celebrities like Kim Kardashian and Lisa from K-pop group Blackpink.

Partnerships with major names such as Coca-Cola and the manga franchise One Piece have also helped to boost Labubu’s profile around the world.

Launched in 2019, Labubu dolls have helped Pop Mart become a major retailer, operating more than 2,000 vending machines and stores around the world.

The company began selling its shares on the Hong Kong Stock Exchange in 2020, with their price has risen by more than 280% since then.

Pop Mart’s shares had dipped in recent weeks over concerns raised by the likes of Wall Street investment bank JPMorgan that it was overvalued and that the firm would be unlikely to sustain the popularity of its toys.

This article was first published in The Business Times on October 17, 2025.

Solid fundamentals, pragmatic policies and strong coordination can preserve financial stability, but we must not be complacent

As global financial conditions began to tighten in 2022, memories of past bouts of turbulence loomed large: the 2008 global financial crisis triggered many corporate defaults and severe credit contractions; the 2013 “taper tantrum” brought about acute exchange rate pressures and capital outflows, raising global concerns over several ASEAN economies.

Driving this new wave of concern was one of the sharpest tightening cycles in decades, unleashed by the US Federal Reserve and other major central banks after global inflation surged. The ultra-low interest rates and massive asset purchases of the COVID-19 era were quickly reversed. Interest rates jumped, the US dollar strengthened, and fears of renewed financial stress spread worldwide.

So as the cycle progressed through 2023, the question was inevitable: Would ASEAN+3, a cooperative grouping of the 10 ASEAN member states plus China, Japan, and South Korea, face another bout of financial turmoil?

The shield that held

ASEAN+3 financial markets – closely integrated with global cycles – reacted swiftly to the shocks: bond yields surged, credit conditions tightened, local currencies weakened and stock markets fell as capital outflows intensified.

The region’s financial market stress index, which captures volatility across key financial indicators, spiked sharply – especially in bond and credit markets, as shown in the figure below. Economies with more open and market-dependent structures were hit the hardest.

 

On paper, all signs pointed to a crisis. Yet, unlike in earlier episodes, ASEAN+3 held firm. There were no widespread institutional failures, no systemic banking collapse and no sovereign defaults. Instead, regional economies adapted swiftly to market volatility without major disruptions.

This resilience underscores just how much the region has learned from past turbulence, and how much stronger its financial systems have become.

Understanding ASEAN+3’s resilience

Policymakers across the region acted in a timely manner, deploying a broad toolkit. Central banks – especially those with inflation-targeting frameworks – used monetary policy decisively, not only to contain inflation, but also to stabilize exchange rates and safeguard financial stability.

Foreign exchange intervention helped smooth excessive volatility and temper depreciation pressures, while capital flow management and macroprudential measures were applied prudently to cushion the impact of external shocks.

Collectively, these well-calibrated actions prevented market turbulence from snowballing into systemic instability.

Robust fundamentals provided a solid foundation. Local currency bond markets in the region had expanded significantly, strengthening resilience by facilitating domestic financing and reducing rollover and exchange rate risks.

This growth reflects sustained capital market development, the rise of domestic institutional investors, growing infrastructure financing needs and regional efforts to curb foreign currency exposure. Sound banking systems – with high capital adequacy ratios and prudent supervision – added another line of defense.

Moreover, most ASEAN+3 economies maintained sufficient foreign reserves – acting as a form of “self-defense” to manage capital flow volatility, support exchange rate stability and sustain investor confidence during stress. These buffers enabled regional economies to absorb external shocks without abrupt policy shifts.

Policy priorities to address vulnerabilities

ASEAN+3 navigated the last tightening cycle without spiraling into crisis, but another severe shock could still expose fault lines and strain buffers. Debt serviceability remains a key concern, particularly for economies with high external exposure and for sectors with elevated corporate debt-at-risk, such as property, construction, manufacturing and raw materials.

A sharp spike in interest rates or renewed currency depreciation could quickly reignite pressures. Moreover, financial institutions are also now more exposed to market risks, making them increasingly sensitive to swings in global liquidity and sentiment.

These risks call for a pragmatic approach and stronger policy frameworks. That means ensuring frameworks are comprehensive and well-coordinated, bolstering surveillance and risk monitoring, and – crucially – articulating policy objectives and targets more clearly. Transparent guidance on how and when to deploy key tools, such as foreign exchange intervention or capital flow measures, can anchor market expectations, reduce risk premia and improve policy credibility.

Policymakers should continue developing local currency bond markets and expanding a broader base of long-term institutional investors, including insurance companies and pension funds. This would help reduce reliance on foreign currency borrowing and external financing. Improving access to hedging instruments and maintaining adequate reserves would further enhance resilience to volatility.

Equally important is closer regional cooperation. Stronger information sharing, early warning systems and coordinated policy responses can help contain cross-border spillovers. Promoting local currency settlement in trade and investment – alongside strengthening regional financial safety nets such as bilateral swap lines and the Chiang Mai Initiative Multilateralisation – would further bolster regional stability and resilience.

Looking ahead

The 2022-to-2023 global tightening cycle was a major test – and ASEAN+3 passed it. The region has demonstrated that solid fundamentals, pragmatic policies and strong coordination can preserve financial stability, even under intense global pressure.

Yet, resilience must not breed complacency.

The challenge now is to lock in the gains, address lingering vulnerabilities and enhance regional preparedness for future shocks. By reinforcing policy frameworks, deepening local markets and strengthening regional cooperation, ASEAN+3 can not only weather the next global storm, but also emerge from it stronger together.

Story Continues