In one line: Japan’s manufacturing activity expands for the first time in a year, largely driven by improvements in output and new orders.
Kelvin Lam (Senior China+ Economist)China+
The Bank of Korea stands pat in May, citing upside risks to inflation
Japan’s manufacturing activity expands for the first time in a year, largely driven by improvements in output and new orders.
Services activity continues to grow at solid pace in May
Kelvin Lam (Senior China+ Economist)China+
- The BoK stood pat in May, citing rising inflation risks due to strengthening economic conditions.
- The rate-cut timing is less certain now due to volatile expectations of the Fed’s move and geopolitical risk .
- Japan’s flash PMI surveys show tentative signs of growth broadening to manufacturing.
Kelvin Lam (Senior China+ Economist)China+
In one line: Korea's 20-day exports hit hard by May’s fewer working days but underlying momentum was improving on a WDA basis.
Kelvin Lam (Senior China+ Economist)China+
In one line: Korea's 20-day exports hit hard by May’s fewer working days but underlying momentum was improving on a WDA basis.
Kelvin Lam (Senior China+ Economist)China+
- Korean 20-day exports slowed sharply in May because of working-day effects.
- The underlying trend is actually improving after adjustment. Chip shipments remain the major driver.
- We expect no change at the upcoming BoK meeting but have pushed back our first rate cut to Q4.
Kelvin Lam (Senior China+ Economist)China+
China's banks held LPR steady in May; More funding is need to prop up the real estate sector
Kelvin Lam (Senior China+ Economist)China+
China's banks held LPR steady in May; More funding is need to prop up the real estate sector
Kelvin Lam (Senior China+ Economist)China+
In one line: Japan's Q1 GDP shrinks more than expected as domestic demand deteriorates
Kelvin Lam (Senior China+ Economist)China+
- Japan’s preliminary Q1 GDP surprised the market to the downside, with growth turning negative.
- Weak domestic demand, such as business investment and consumption, was the culprit.
- The sluggish growth does not warrant an early rate hike, as markets suggest; we stick to our Q4 call.
Kelvin Lam (Senior China+ Economist)China+
- China consumer prices rose in April, after volatility in Q1 caused by holidays and base effects.
- The CPI changes were driven by higher energy and core inflation, but domestic demand was still feeble.
- The PBoC will use “flexible, precise and effective” monetary policy to promote reflation.
Kelvin Lam (Senior China+ Economist)China+
Despite tick-up in China CPI, demand is still weak; Producers still battle deflation
Kelvin Lam (Senior China+ Economist)China+
In one line: Chinese producers still battle deflation
Kelvin Lam (Senior China+ Economist)China+
In one line: China’s FX reserves fell sharply in April, thanks to a stronger dollar and a record rise in US yields
Kelvin Lam (Senior China+ Economist)China+
- China’s Q1 GDP grew solidly, thanks to vigorous manufacturing output and services growth.
- Services growth is broadening to business services, but the consumption recovery is relatively lacklustre.
- China will follow its own reform path at the Third Plenum, rather than adopting Western prescriptions.
Kelvin Lam (Senior China+ Economist)China+
In one line: Korean export recovery continues, thanks to resilient US and Chinese demand
Kelvin Lam (Senior China+ Economist)China+
- Korea’s WDA exports have grown solidly in recent months, pointing to a sustained recovery in demand.
- Semiconductors accounted for 70% of growth in April; both US and Chinese demand was resilient.
- Weak currency played a role in supporting exports; the level of export values is still below that in 2022.
Kelvin Lam (Senior China+ Economist)China+
Chinese industrial profits continue to improve in Q1 despite March's slowdown
Kelvin Lam (Senior China+ Economist)China+
- - CHINA’S RECOVERY MAKING HEADWAY
- - JPY PRESSURE GIVING THE BOJ A HEADACHE
- - STRONG EXPORTS LIFT KOREAN GROWTH
Kelvin Lam (Senior China+ Economist)China+
In one line: Japan's manufacturing PMI improves on higher output and weak JPY
Kelvin Lam (Senior China+ Economist)China+