Japan Economics Weekly BoJ still likely to tweak Yield Curve Control The Bank of Japan remained under pressure to defend its yield target this week and pledged on Thursday to keep buying an unlimited amount of bonds for as long as necessary. While 10-year JGB yields... 29th April 2022 · 3 mins read
India Chart Pack Monetary conditions tighten The key policy development this month was the introduction of a new Standing Deposit Facility, through which the RBI will drain excess banking sector liquidity. The SDF now provides the floor for the... 28th April 2022 · 9 mins read
Asia Economic Outlook New headwinds emerge Our GDP growth forecasts are generally above the consensus, but with higher commodity prices and weaker global demand set to weigh on economic recoveries, growth across much of Emerging Asia will be... 28th April 2022 · 35 mins read
Japan Economics Update BoJ may yet widen its tolerance band The Bank of Japan resisted the temptation to widen its tolerance band for 10-year JGB yields today, but it did outline that it will from now on conduct unlimited fixed rate auctions every business day... 28th April 2022 · 3 mins read
Japan Data Response Japan Retail Sales & Industrial Production (Mar. 2022) The strong rebound in retail sales in March suggests that the post-Omicron recovery got off to a good start. Meanwhile, industrial production edged up last month, but it will continue to be held back... 28th April 2022 · 2 mins read
China Activity Monitor Economy pushed backwards by Omicron Our China Activity Proxy (CAP) suggests that lockdowns in Jilin and Shenzhen triggered an outright contraction in the economy in March, even before restrictions were tightened in Shanghai and... 27th April 2022 · 3 mins read
Capital Daily China’s restrictions add extra turbulence for global markets More inflation from supply chain pressures owing to lockdowns in China could make equity and bond markets more turbulent. 26th April 2022 · 6 mins read
Japan Economics Update BoJ to widen 10-year yield tolerance band further With US Treasury yields set to keep rising over the coming year, it will become even more difficult for the Bank of Japan to defend its target for 10-year JGB yields. While we don’t expect the Bank to... 26th April 2022 · 4 mins read
China Economic Outlook No quick fix this time China’s economy rebounded sharply from the initial COVID-19 outbreak. The recovery will be slower and more muted this time, even if the ongoing COVID outbreak is successfully quashed, as less policy... 26th April 2022 · 21 mins read
Japan Data Response Japan Labour Market (Mar. 2022) Employment bounced back in March and it should continue to recover over the coming months as long as the reopening doesn’t go into reverse again. That should push the unemployment rate back down to... 26th April 2022 · 2 mins read
Asset Allocation Update Slim chance of another 2000s-style boom in EM equities We think that a period of sustained outperformance from emerging market equities relative to those in developed markets – like that which accompanied the last big bull run in commodities in the 2000s... 22nd April 2022 · 6 mins read
India Economics Update MPC minutes highlight change in priorities The minutes of the MPC’s early April meeting – in which the committee kept the repo rate on hold but introduced a new rate that set a higher floor for the interest rate corridor – confirm that taming... 22nd April 2022 · 2 mins read
Japan Economics The yen’s depreciation has further to run We think the yen will drop even further as policy divergence widens. We now forecast USD/JPY to reach 140 by the end of this year, before dropping back as the Fed takes its foot off the gas in 2023... 22nd April 2022 · 4 mins read
China Economics Weekly PBOC will embrace the renminbi’s decline The People’s Bank appears to have been pushing against the renminbi’s strength for a while. This week, finally, the market responded. The PBOC doesn’t have much tolerance for sharp market moves and... 22nd April 2022 · 3 mins read
Emerging Markets Economics Chart Pack Spillovers from war in Ukraine intensifying The perfect storm of surging commodity prices due to the war in Ukraine and the hawkish shift by major DM central banks has pushed a few frontier markets to the brink of sovereign default. Sri Lanka... 22nd April 2022 · 10 mins read
Asia Economics Weekly Signs of exports softening, new governor at the BoK There are growing signs that demand for the region’s exports are starting to soften. Weaker external demand will add to the headwinds facing the region’s economies, which are already being hit by the... 22nd April 2022 · 6 mins read
