- The potential lift from Thailand’s initial cash relief will still be limited by deteriorating balance sheets.
- Big-bang restart of the BSP’s RRR cuts likely to be followed by smaller but more frequent reductions.
- The post-pandemic rise in India’s LPFR, which has flattered the unemployment rate, has peaked.
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
- In one line: DM demand is helping to stabilise the ship.
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
BI SPRINGS A SEP. SURPRISE; 50BP MORE CUTS IN Q4
- …INDIA’S GDP GROWTH SLOWDOWN IS FAR FROM OVER
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
- Taiwanese consumer demand remains fragile, but the weak August sales print is not representative...
- …As volatile vehicle sales growth depressed the headline; this is likely to rebound in September.
- Thai exports stayed robust in August, but leading indicators are grim and THB strength is a threat.
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
- India’s PMIs are down concurrently year-over-year for the first time in a while, signalling 5% growth.
- Malaysian food inflation is likely to increase, but headline disinflation overall is still on track.
- Singapore’s core inflation rise is no cause for worry; domestic services inflation momentum is slowing.
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
The moderation in India’s PMIs continues, as they end Q3 on a soft note
Food disinflation pushed down Malaysian inflation in August
Singaporean headline inflation falls in August, despite a pick-up in core
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
- The outperformance of Indian GDP growth versus other big EMs in the post- Covid era is undeniable…
- …But putting its growth pace into its proper context remove s a lot of sheen; China’s still a bigger driver.
- “Make in India” remains a macro failure, despite the smattering of success stories at the micro level.
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
- In one line: Heating housing market concerns continue to haunt the CBC.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
Falling trade balance hides pick-up in Malaysian export momentum
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- Ignore Malaysia’s smaller trade surplus in August, as the economy ramps up intermediate imports...
- ...The recovery in electronics exports continues to gather steam, powering manufacturing growth.
- The CBC sounds increasingly desperate in trying to rein in housing prices; an uphill task, in our view.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- In one line: Front-running a near-certain cut by the Fed later today; at least one more to come in Q4.
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
- Bank Indonesia surprised yesterday by starting its easing cycle, hours ahead of the Fed’s own first cut.
- We’ve added a few more rate cuts to our outlook, and now see the BI rate ending 2025 at 4.75%.
- Blame a gold rush for India’s deficit blowout in August, which masked a few key silver linings.
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
- In one line: Post-duty cut spike in gold imports hits the deficit hard, overshadowing a more confident recovery in real import demand.
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
- In one line: Down to a four-month low, thanks to a broad-based deceleration.
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
A solid month of August for Indonesian exports, but downside risks linger
Recovery in Singapore's semiconductor exports cushions August headline
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
- Indonesian export growth rose to a 19-month high in August, but this leap faces major downside risks.
- Singapore’s exports are still benefiting from the continued recovery in electronics demand.
- RBI Governor Das sounds less adamant that rate cuts require 4% long-run CPI; all eyes on October.
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
- We’re keeping to our base case that the first cut from the RBI could come as soon as next month…
- …The bounce in CPI is unlikely to be as bad as the MPC feared, with food pressures truly subsiding.
- Headline IP growth looks stable on the surface, but momentum has clearly faded in recent months.
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
- In one line: The improvement in food inflation is real; IP is losing steam, with support from consumer industries fading quickly.
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
Indonesian retail sales growth remains skin-deep
A reassuring start to the third quarter for Philippine trade
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
- Indonesian sales growth rose to a four-month high in July, but the underlying trends remain weak…
- …Consumer confidence is still subdued year-over- year, and this could soon hurt borrowing appetite.
- The mirror image in Philippine sales growth is just as misleading; support from jobs has peaked.
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
