Daily FNArena News - International

The Japanese government believes Japan – the world’s largest consumer of Australian exports – is heading into recession.

The Chinese economy is slowing but economists continue to expect a soft landing and a shift in focus away from inflation towards supporting growth.

CLSA’s June survey into Chinese manufacturing confirms Chinese manufacturers continue battling with higher input costs.

Standard Chartered met with clients in Asia and came away with clues on how investors in the region view the outlook for Fed action and the outlook for markets and economies in the region.

Chinese authorities appear to be moving towards a combination of monetary and currency appreciation to deal with inflation, which suggests a slower rate of currency appreciation.

Stronger oil prices should be hurting Asia given its high level of imports but according to DBS it is demand growth through the region that is allowing growth to remain strong.

Chinese manufacturers are indicating their operational circumstances are improving fast while inflationary pressures are subsiding.

Evidence suggests economic de-coupling between Asia and the West is well and truly underway but GaveKal suggests it will need falling food prices for financial markets to also de-couple.

It is generally considered China has an almost endless supply of rural workers willing to move to the cities but a recent academic study suggests this is not the case.

As expected bad weather conditions have impacted on CLSA’s monthly China Purchasing Managers’ Index.