The yen falls and Japanese bond prices slide after the election of a new Prime Minister, who is expected to oppose rate hikes and borrow much more. Vietnam’s GDP surges with front-loaded exports to the US, and dairy prices fall.
In our Deep-Dive interview, ANZ Economist Arindam Chakraborty explains why banks in ASEAN countries and India aren’t passing on all of the recent rate cuts.
5 things to know in 5 minutes:
A swathe of geopolitical news shunted markets around overnight, with the election of a new Japanese PM pushing the yen down and hitting prices of Japanese Government Bonds or JGBs. Gold neared US$4,000/oz. France’s Government resigned too, and the US Government shutdown is dragging on, which is affecting confidence, says ANZ’s Head of G3 Economics Brian Martin.
Vietnam’s annual GDP growth rate accelerated to 8.2% in the September quarter. It’s all about frontloading of exports before US tariffs are applied, says ANZ Economist Kausani Basak.
ANZ New Zealand’s Commodity Price Index out yesterday showed a 3.2% fall in world prices for dairy products in September, says ANZ New Zealand Agricultural Economist Matt Dilly.
We get inflation data out of the Philippines later today. ANZ Asia Economist Arindam Chakraborty expects a jump in the annual rate to 2.1% in September from 1.5% in August.
Thailand reported another fall in its Consumer Price Index yesterday, with core CPI deflation of 0.65%, its weakest rate since August last year, says ANZ Asia Economist Krystal Tan.
Cheers,
Bernard.
PS: Catch you tomorrow with a preview of the Reserve Bank of New Zealand’s expected rate cut.
