- Asia’s robust growth indicators begin to moderate… "In a week that was light on data releases, our attention was focused on Taiwan’s export orders which, while still robust, show signs of slowing. This is in line with our expectations of a slower H2 for the region as the global inventory cycle and impact of policy stimulus wears off. Last week’s release of China’s strong, but slowing, Q2 GDP reinforces this view."
- …while inflation temporarily eases ""A number of recent inflation releases for June show moderation for the time being. China, Korea, Thailand and Singapore, for example, have all posted lower-than-expected inflation over the past month.Nevertheless, many central banks in the region appear ready to continue normalizing interest rates from very low levels in order to preempt rising underlying inflationary trends."
- Markets rebound on improving European sentiment "Asian currencies and equities were supported by a modest decline in global risk premiums."
- In the coming week…. "Korea’s Q2 GDP outturn is expected to reveal another strong quarter of growth, while markets will watch for CPI releases in Australia and Japan as a guide to the future course of monetary policy. The Reserve Bank of India will hold its next scheduled policy meeting on July 27, with expectations of another rate hike."
BBVA Asia Weekly Watch 20100723
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