In one line: Korean export recovery continues, thanks to resilient US and Chinese demand
Kelvin Lam (Senior China+ Economist)China+
Korean manufacturers are highly bullish, despite mounting cost pressures
Duncan WrigleyChina+
- Korea’s April manufacturing PMI points to improving output and demand trends year-to-date.
- But burgeoning cost pressures are making firms cautious on hiring and inventory purchasing.
- The BoK is likely to worry about these cost pressures disrupting the slowing trend in consumer inflation.
Duncan WrigleyChina+
- 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+
Manufacturing output in rude health, though the PMIs provide contrasting readings for new orders
Duncan WrigleyChina+
China's PMIs indicate manufacturing output surge, despite mixed demand readings; services activity suffers post-holiday dip
Duncan WrigleyChina+
- Both China’s April PMIs agree that manufacturing output is going from strength to strength...
- ...But the official gauge shows demand fading slightly, while the Caixin indicates further robustness.
- It was announced at yesterday’s Politburo meeting the reform-oriented Third Plenum will be held in July.
Duncan WrigleyChina+
Tokyo inflation slows due to implementation of free high school education and cooling food inflation
Duncan WrigleyChina+
The BoJ resists JPY market pressure in keeping the policy rate target range steady
Duncan WrigleyChina+
The BoJ holds the policy rate steady; Tokyo consumer inflation cools, thanks to education subsidies
Duncan WrigleyChina+
In one line: Japan's manufacturing PMI improves on higher output and weak JPY
Kelvin Lam (Senior China+ Economist)China+
In one line: Japan's manufacturing PMI improves on higher output and weak JPY; services activity expands amid higher cost pressure
Kelvin Lam (Senior China+ Economist)China+
- China’s structural problems, notably in the property sector, are limiting the efficacy of interest rate cuts.
- But varied public views on the management of bond yields hint at a broader internal policy debate.
- Labour-market issues are compounded by credit constraints for private firms, especially SMEs.
Duncan WrigleyChina+
- The BoJ is likely to keep the policy rate unchanged, as Japan hasn’t attained sustainable inflation yet.
- Broad wage growth is likely to lag strong pay rises at large employers, while consumption looks soft.
- But building pressure on JPY will probably force the Bank to strike a more hawkish tone on future rates.
Duncan WrigleyChina+
- China’s loan prime rates were left unchanged in April after the PBoC’s earlier decision to hold the MLF.
- The PBoC has less room to cut rates in the near term as market bets on a delayed Fed cut rate increase.
- Early Korean export data show strong memory-chip demand; US shipments remain solid.
Kelvin Lam (Senior China+ Economist)China+
In one line: Solid Korean 20-day export growth driven by chips demand
Kelvin Lam (Senior China+ Economist)China+
In one line: China's LPR remains unchanged in April
Kelvin Lam (Senior China+ Economist)China+
In one line: China's LPR remains unchanged in April; Solid Korean 20-day export growth driven by chips demand
Kelvin Lam (Senior China+ Economist)China+
In one line: Japan's inflation cools in March; the BoJ to stand pats next week
Kelvin Lam (Senior China+ Economist)China+