Daily FNArena News - International

The Bank of Japan’s half-yearly review of economic conditions has seen inflation expectations revised down, but continues to suggest there will be further increases in interest rates.

Lehman Brothers has cut its forecasts for Chinese growth next year, expecting a fall in exports to limit the increase in GDP to something below 10%.

HSBC has come away from meetings with government officials and analysts with the view the political and economic situation in Thailand is relatively stable leading into next year’s election.

Macquarie suggests interest rates will mover higher in Japan, but the timing of further increases will be influenced by the level of the yen to the US dollar.

Forecasts for the yen against the US dollar are being revised lower, but conditions are in place for the Asian currency to rally against the greenback into next year.

Macquarie economists believe the macro picture in China is turning positive for the first time in six months.

DBS expects currency markets to display more volatility this quarter as longer-term trends should emerge to drive changes in exchange rates.

Lehman Brothers is sticking to its underweight call on emerging markets, suggesting the current environment doesn’t support outperformance against developed markets.

Morgan Stanley suggests it isn’t the carry trade keeping a lid on the yen, but eventually fundamentals will win out and the currency should strengthen.

China’s Purchasing Manufacturers Index outcome for September suggests a slowing in the economy and a greater exposure to external markets.