Daily FNArena News - International

Westpac agrees with the market that the Bank of Japan won’t lift rates this week, but expects increases in coming months given the economic outlook remains positive.

A stronger than expected quarterly growth outcome of 11.1% has the market anticipating further tightening measures for the Chinese economy, but any changes are unlikely to be rushed through.

Gavekal Research suggests the boom in Chinese equity markets is far from over. The Chinese government could benefit by giving investors exposure to foreign markets as well.

No longer content to simply park its US$1 trillion of foreign currency reserves in safe US Treasuries, China is looking to diversify and profit. This is not good news for the US dollar.

CLSA’s monthly survey into trading conditions for Chinese manufacturers revealed very, very buoyant conditions. If anything, more measurements to slow down seem necessary.

As the PBoC raises reserve requirements yet again, there is no end in sight for the Chinese investment frenzy.

Latest figures show increasing inflationary pressures in the Chinese economy, with both BDS and Credit Suisse anticipating higher interest rates in response.

Morgan Stanley’s Stephen Roach has returned from a fourth trip to India in the past three years more confident its growth story is moving into full swing thanks to moves to address its challenges.

The innovative thinkers at GaveKal research can’t see any change from 10% growth and subsequent demand coming out of China in the current year.

Macquarie suggests Asia is entering a reflationary cycle, so those nations with more policy options should be best able to benefit from the expected strength in currencies throughout the region.