Asia Economics Update Korean bailout positive but won't prevent slowdown The announcement of a massive $130bn (13% of GDP) liquidity support package by the Korean authorities over the weekend should calm the markets and boost the currency in the short run, but it won’t... 20th October 2008 · 1 min read
Asia Economics Update India tries to boost investor confidence with big rate cut Today’s unexpected 100 basis point (bp) cut by the Reserve Bank of India (RBI) in the key repo lending rate, to 8.0%, is intended to boost investor and consumer confidence. But given that this is the... 20th October 2008 · 1 min read
Asia Economics Update Trying, and failing, to make sense of China's slowdown The sharp slowdown in Chinese GDP growth in the third quarter is hard to square with detail showing still healthy growth in spending across the economy. Nonetheless, officials will err on the side of... 20th October 2008 · 1 min read
Asia Economics Update What does the global slowdown mean for Japan? Japan’s seasonally adjusted trade deficit of ¥208 billion in August reported earlier in the week – the first monthly deficit since the early 1980s – has increased concerns about the fallout from the... 17th October 2008 · 1 min read
Asia Economics Update India's financial stability fears prompt another reserve ratio cut Today’s announcement by the Reserve Bank of India (RBI) of another cut in the cash reserve ratio suggests that the shift in focus away from inflation is towards financial stability and not growth. 15th October 2008 · 1 min read
Asia Economics Update Capital outflows now affecting China too The latest data suggest that investors have been pulling money out of China in recent weeks. After dealing with hot inflows of nearly $200bn in the first half of 2008, officials will be glad for the... 14th October 2008 · 1 min read
Asia Economics Update Korean interest rates to fall to 3% The Bank of Korea’s decision to cut interest rates by 25 basis points (bp) to 5% (together with a similar move by Taiwan and a further 50bp cut by Hong Kong) was not so surprising given yesterday’s... 9th October 2008 · 1 min read
Asia Economics Update China steals the show as Japan stays on hold One of the many talking points from today’s coordinated cuts in global interest rates is the fact that China quickly followed, whereas Japan left rates on hold. As it happens, the inaction from Japan... 8th October 2008 · 1 min read
Asia Economics Update Bank of Japan on hold for a while yet The Bank of Japan’s willingness to cut interest rates even further from already exceptionally low levels, combined with the prospect of outright declines in both economic activity and prices, suggests... 7th October 2008 · 1 min read
Asia Economics Update Australia leading the way on rate cuts Today’s surprisingly large 100 basis points (bp) rate cut by the Reserve Bank of Australia (RBA) from 7.00% to 6.00% (consensus 50bp), may be the first in a series of aggressive moves from the world’s... 7th October 2008 · 1 min read
Asia Economics Update Credit crisis prompts India to loosen monetary stance Today’s surprise announcement by the Reserve Bank of India (RBI) of a 50 basis point (bp) cut in the cash reserve ratio is the latest indication that the country is not immune to the global financial... 6th October 2008 · 1 min read
Asia Economics Update Tankan shows Japan's economy slowing, not collapsing The Bank of Japan’s Tankan survey of business conditions was disappointing but not disastrous. The detail contained some reassuring news with regard to financial conditions and the labour market. 1st October 2008 · 1 min read
Asia Economics Update Tankan to show Japanese economy still relatively healthy We believe that the Bank of Japan’s quarterly “Tankan” survey for September, due next Wednesday, will show that business conditions have held up rather better than the consensus expects. Indeed, the... 24th September 2008 · 1 min read
Asia Economics Update China tries to stem the equity slide, again Chinese share valuations are now at their lowest in more than a decade. Yet government attempts today to give them a boost through a tax cut and direct share purchases may be more harmful than helpful... 18th September 2008 · 1 min read
Asia Economics Update China shifts stance with surprise rate cut Today’s unexpected rate cut in China is intended as a sign that the government is willing to act preemptively to guarantee continued strong economic growth. But there will also be suspicions that the... 15th September 2008 · 1 min read
Asia Economics Update Korean rates will fall soon despite hawkish statement Today’s decision by the Bank of Korea (BoK) to keep interest rates at 5.25% (after last month’s 25 basis points hike) was accompanied by a relatively hawkish policy statement. But we still expect the... 11th September 2008 · 1 min read
