Daily FNArena News - International

Danske Bank suggests China will move to a more flexible exchange rate and currency revaluation, but it is likely to be at a slower pace than many in the market would like to see.

Standard Chartered Bank suggests looking more deeply at Chinese economic figures shows an economy that is far from overheating and in some cases is showing signs of slowing down.

Experts agree China must do more to slow down its economic growth, as the latest interest rate rise by itself is unlikely to have much impact.

The People’s Bank of China has lifted official interest rates, but experts suggest more changes, particularly a strengthening of the currency, are necessary if growth is to moderate.

A drift off in inflation will prompt a round of interest rate cuts from ASEAN nations, HSBC predicts.

There has been no change to Morgan Stanley’s positive outlook for the Japanese economy despite lower than expected growth in the June quarter.

HSBC suggests as long as the US economy doesn’t experience a hard landing, demand from China will be enough to continue driving commodity prices higher.

Asian equity markets have rallied in recent weeks but experts question the sustainability of the move given the earnings outlook is worsening.

The Japanese economy grew at a slower than expected pace in the June quarter, though economists suggest there were enough positives in the result to maintain a positive outlook.

Experts are now expecting further interest rate increases in Japan before the end of the year, as there continue to be signs the economy is experiencing price pressures.