Daily FNArena News - International

Average land prices in Japan have risen for the first time in 14 years, which could add to the pressure for further increases in interest rates.

CLSA’s July survey of Chinese manufacturing shows a sector enjoying buoyant times, and passing on higher input costs. Expect tougher measurements by the authorities.

DBS suggests the pressure to revalue the renminbi is coming not just from strong domestic growth, with the US likely to again step up its push to have the exchange rate adjusted.

ANZ Bank has revised down its growth outlook for Indonesia, but ABN Amro suggests with monthly data showing signs of bottoming it might be time to start looking for opportunities.

The Chinese central bank has lifted reserve requirements for the banking sector, but ABN Amro suggests such action is not enough to slow growth and more needs to be done now before problems escalate.

The OECD has suggested Japan should be conservative when considering future interest rate increases as deflation remains a threat and reducing government debt should be a higher prioroty.

Morgan Stanley economist Andy Xie remains bearish on Asia, suggesting ongoing strength in oil prices is likely to impact on growth unless Asian governments increase interest rates significantly.

China’s growth for the June quarter was higher than expected at 11.3%, leading to renewed speculation of further increases in interest rates. But most experts suggest this is not enough without further adjustments to the exchange rate.

China is expected to report quarterly GDP growth of more than 10% today, leading an increasing number of experts to argue higher interest rates will be needed to curb the growth rate.

Experts are divided as to how soon it will be before the Bank of Japan (BOJ) will be forced to lift interest rates again after last week’s 0.25% increase.