Asia Economics Update More India rate hikes on the way Today’s unscheduled Reserve Bank of India (RBI) rate hikes are a sensible and not unwelcome move. India’s economic upswing is strong and price pressures are already uncomfortably high. Further... 2nd July 2010 · 1 min read
Asia Economics Update Asia's industrial sector recovery is losing some power Manufacturing PMIs in emerging Asia and Australia moved lower in June. The recent explosive growth in industrial production will inevitably slow in coming months as the boost from inventory re... 1st July 2010 · 1 min read
Asia Economics Update Thailand to start monetary tightening in Q3 Bank of Thailand (BoT) monthly indicators for May suggest that the hit to the economy from the violence in Bangkok has not been too severe, which is what we expected would be the case. Exports and... 1st July 2010 · 1 min read
Asia Economics Update Taiwan targets closer ties with China A so-called Economic Co-operation Framework Agreement (ECFA) was approved yesterday between Taiwan and China. The deal should increase trade and for Taiwan there are two major implications. Firstly... 30th June 2010 · 1 min read
Asia Economics Update Crisis in North to increase Korean re-unification costs The Bank of Korea (BoK) released its latest annual estimates of the North’s economy late last week. In short, the North-South income gap remains massive. The shift away from free market reform in the... 29th June 2010 · 1 min read
Asia Economics Update Singapore still firing on all cylinders Strong April-May industrial output data suggest that Singapore will post another stunning q/q annualised GDP gain when the Q2 figures are released by mid-July. Even Singapore cannot keep this up but... 29th June 2010 · 1 min read
Asia Economics Update Australia outlook strong despite the leadership upheaval International investors should not be concerned by the change of prime minister even though, by Australian standards, the events of this week have been unprecedented. Data on population trends, which... 25th June 2010 · 1 min read
Asia Economics Update New Zealand set for a sub-par upswing Data released overnight showed that New Zealand’s economy expanded again in Q1, albeit at a slower pace than at the end of 2009. The recovery should not come under serious threat in coming quarters... 24th June 2010 · 1 min read
Asia Economics Update Pakistan is struggling to retain IMF support The delay in implementing a new value added tax has soured relations between Pakistan and the IMF and means that the capital inflow needed to shore up the balance of payments will be slow in coming... 23rd June 2010 · 1 min read
Asia Economics Update Asian currencies set to rise further The shift to de-peg the renminbi against the US dollar, announced on Saturday, will probably bring further FX rate appreciation across Asia, even though China is likely to move slowly from now on. The... 21st June 2010 · 1 min read
Asia Economics Update Indonesia aims to manage capital inflows, not stop them Indonesia yesterday joined the regional trend and introduced new measures designed to reduce the volatility of capital flows and encourage foreign investment in longer term financial instruments. The... 17th June 2010 · 1 min read
Asia Economics Update The Philippines upswing remains in good shape Data published over the last few days have been mixed but the Philippines economic recovery still probably stayed strong in Q2. Fiscal consolidation can proceed slowly and the expansion will almost... 17th June 2010 · 1 min read
Asia Economics Update Korea leads the way on capital controls Curbs on capital flows recently announced in Korea are designed to reduce extreme swings in the won and are not an attempt to influence where the currency will move over the long run. Korea is a... 15th June 2010 · 1 min read
Asia Economics Update India set to hike rates again soon Data from India released today, and late last week, showed that inflation pressures have picked up again while the economic upswing has stayed strong. Further monetary tightening is only a matter of... 14th June 2010 · 1 min read
Asia Economics Update Korea will probably start to tighten in Q3 The Bank of Korea (BoK) left its policy rate at 2.0% today, as expected. The turmoil in the markets and the European debt crisis weighed heavily in the decision to stay on hold. However, the local... 10th June 2010 · 1 min read
Asia Economics Update New Zealand to move gradually from now on The Reserve Bank (RBNZ) earlier today lifted its cash rate by 25bp to 2.75%, as expected. The local economic upswing should continue, despite the increased external risks, but the recovery will... 10th June 2010 · 1 min read
