Meanwhile in Asia…
Some tidbits from the past week or so.
- The Bank of Japan has declared it’s going to miss its 1% inflation goal, with real inflation being stuck somewhere between 0.5 – 0.8% for the past year. Troubling news for an economy already shown to be slowing and struck hard by deflationary pressure.
- The fallout from the Senkaku Islands dispute continues as Nissan and Toyota post shocking monthly declines in sales in China.
- Additional fallout from the Senkaku dispute has led to a general diversification of Japanese corporate investment from China into ASEAN economies as alternatives for FDI.
- Former Prime Minister Shinzo Abe (now president of the LDP) made another controversial visit to the Yasukuni Shrine. Probably playing to a domestic audience, but this does not help Noda’s attempts to soothe diplomatic relations with China.
In light of this sort of news it’s interesting to note the following as well:
We’re waiting on the GDP announcement for China’s 3Q growth, but the general consensus seems to be steeling for a continued slowdown in GDP growth.
We’re in for some interesting times ahead…