Introduction

In a major policy U-turn, the Pakistan Civil Aviation Authority announced the restoration of airspace transit rights for Taiwan's two major airlines, allowing Taiwan-Europe routes that previously required detours to reduce operating costs. Today, Muyan will also bring you coverage on the strong late-night earthquake in Chiba Prefecture, Japan, and the tanker mine-striking incident in the Strait of Hormuz. How will the latest geopolitical deployments of the US military and the Indo-Pacific region affect regional dynamics? We will have more on that shortly.

Today's Global Focus

1. Pakistan's Major Policy U-Turn: Airspace Transit Rights Restored for Taiwan's Two Major Airlines

• What Happened: On October 28, the Pakistan Civil Aviation Authority issued an official document approving China Airlines and EVA Air to use its airspace, with the permit lasting until March 27, 2027. Just hours prior, Pakistan's Defense Minister had confirmed a ban on Taiwanese airlines based on the "One China" policy.
• Why It Matters: This rapid policy reversal allows Taiwan-Europe routes, which previously had to detour around Russia or the Middle East, to resume normal flight paths. This not only directly shortens travel times for passengers but also effectively reduces fuel and operating costs for the airlines.
• Taiwan Perspective: This decision directly reduces flight times for flights between Taiwan and Europe, bringing a tangible positive impact to the convenience of Taiwanese travelers and cost control in the aviation industry.
• Source: Anadolu Agency (https://www.aa.com.tr/en/world/pakistan-reverses-ban-on-taiwanese-airlines-using-its-airspace-report/3377759)

2. Strong 5.5-Magnitude Earthquake Strikes Chiba Prefecture, Japan Late at Night: Shaking Felt in Tokyo and Narita Airport

• What Happened: A magnitude 5.5 earthquake struck northeastern Chiba Prefecture, Japan, at 12:07 AM on October 29, with a focal depth of approximately 52 kilometers. Strong shaking was observed in the area of Narita Airport, and noticeable tremors were felt in Tokyo and several neighboring prefectures. Fortunately, there is currently no tsunami threat, and no major damage has been reported so far.
• Why It Matters: Following the earthquake, the Japan Meteorological Agency issued a warning, reminding the public that aftershocks of similar intensity could still occur in the area over the coming week, and urging everyone to remain vigilant.
• Taiwan Perspective: Since Japan is the top travel destination for Taiwanese citizens, this earthquake and the subsequent risk of aftershocks will directly affect the travel safety of Taiwanese visitors to Japan as well as flight departures and arrivals.
• Source: Nippon.com (https://www.nippon.com/en/news/jiji20261029001/quake-hits-japans-chiba-pref-no-tsunami-observed.html)

3. Three Tankers Strike Mines in the Strait of Hormuz: Escalating Middle East Conflict Threatens Global Energy Supply Chain

• What Happened: On October 29, the Iranian Revolutionary Guard Corps claimed that three tankers were damaged after striking mines in the Strait of Hormuz, and that they shot down and captured a US military MQ-1 spy drone in the eastern part of the strait. Meanwhile, US President Donald Trump denied authorizing Vice President JD Vance to initiate peace talks with Iran.
• Why It Matters: The Strait of Hormuz is the world's most critical crude oil transit route, and this escalation of conflict has once again heightened market concerns over disruptions to the global energy supply chain.
• Taiwan Perspective: Taiwan is highly dependent on energy imports, so instability in the Middle East and disruptions to shipping lanes could expose Taiwan to imported oil price hikes and inflationary pressures.
• Source: Al Jazeera (https://www.aljazeera.com/news/2026/10/29/irgc-says-3-tankers-hit-mines-in-strait-of-hormuz-us-spy-drone-captured)

4. Australian Defense Minister Warns of China's Military Expansion: China Responds That Its Military Power Aims to Safeguard Sovereignty

• What Happened: On October 29, Australian Defense Minister Richard Marles pointed out that China is undergoing the largest conventional military buildup of any country since the end of World War II, creating pressure points in Southeast Asia. According to Chinese Foreign Ministry spokesperson Guo Jikun, China is committed to peaceful development, and its military strength is aimed at safeguarding national security.
• Why It Matters: This reflects the ongoing intensification of geopolitical rivalry in the Indo-Pacific region, with significant differences remaining between Australia and China regarding regional security and dominance.
• Taiwan Perspective: This geopolitical standoff directly relates to the freedom of navigation in the South China Sea and the Taiwan Strait, while also indirectly affecting Taiwan's overall defense security and the stability of the surrounding region.
• Source: Ministry of Foreign Affairs of China (https://www.fmprc.gov.cn/mfa_eng/xwfw_665399/s2510_665401/202610/t20261029_11512345.shtml)

5. North Korea Launches 12 Ballistic Missiles Toward the Sea of Japan: Rejects South Korea's Military Dialogue Proposal

• What Happened: At around 12:30 PM on October 29, North Korea launched approximately 12 short-range ballistic missiles from the Wonsan area on its east coast toward the Sea of Japan, with a flight distance of about 250 kilometers. This launch comes at a time of heightened tension in inter-Korean relations following a landmine explosion in the Demilitarized Zone in September, and is viewed by observers as a rejection of South Korea's recent proposal for military dialogue.
• Why It Matters: North Korea's large-scale missile tests have once again escalated tensions on the Korean Peninsula, presenting new challenges to Northeast Asian security and defense.
• Taiwan Perspective: Instability in Northeast Asia will directly affect regional security cooperation around Taiwan and the overall defense deployment in the Indo-Pacific.
• Source: The Japan Times (https://www.japantimes.co.jp/news/2026/10/29/asia-pacific/north-korea-fires-dozen-ballistic-missiles/)

6. Bank of Canada Raises Rates for the First Time in Three Years: Global High-Interest-Rate Environment Likely to Prolong

• What Happened: On October 28, the Bank of Canada announced a rate hike, marking its first interest rate increase in three years, aimed at addressing inflationary pressures that remain consistently above target. Currently, major central banks worldwide continue to maintain high interest rates or consider further hikes due to energy shocks and price pressures driven by AI and defense investments.
• Why It Matters: This indicates that global inflationary pressures have not subsided and the high-interest-rate environment may be prolonged, posing challenges to capital liquidity in global financial markets and economic growth.
• Taiwan Perspective: With the global cost of capital remaining high, the overseas financing costs of Taiwanese export enterprises will be directly affected, potentially triggering a new wave of exchange rate volatility.
• Source: Al Jazeera (https://www.aljazeera.com/economy/2026/10/28/bank-of-canada-raises-interest-rates-for-first-time-in-three-years)

Closing

The most noteworthy development today is undoubtedly Pakistan's rapid shift in its airspace policy, which brings tangible convenience and cost reductions to Taiwan-Europe routes. Over the next few days, we will need to keep a close eye on whether the conflict in the Strait of Hormuz in the Middle East escalates further, and the subsequent volatility this may bring to global energy and financial markets. I am Muyan, and I will see you tomorrow.