Daily FNArena News - International

China is encouraging its banks to take stakes in foreign institutions, while over in Africa China’s resource interests grow.

It looked like Japan was about to drag itself out of a decade of deflation, but no more. The Aussie gets a green light.

Today’s economic data again surprised to the upside. Expect another Chinese interest rate hike, soon.

Danske Bank suggests market speculation of a revaluation of the Chinese currency is justified as such a move makes sense, even though it is unlikely to occur in the short-term.

ANZ Bank expects last week’s move by the PBOC to lift bank reserve requirements will be followed by an increase in official interest rates.

Asian equity markets have run strongly since the credit crisis in August but GaveKal and Credit Suisse see scope for further gains before any bursting of the bubble.

China’s economic growth is slowing, Credit Suisse maintains, and not accelerating as suggested by others. But it is a good thing as it will make growth sustainable.

Morgan Stanley sees signs policymakers in China are turning more hawkish, which suggests further increases in interest rates and a stronger currency by the end of the year.

DBS suggests throwing away the old maxim a 1% change in US growth meant a 2% change for Asia as the region is now driving more of its own growth and can better withstand a slowing in the US economy.

The People’s Bank of China has raised the reserve requirements for banks for the seventh time this year.