US stocks rose again overnight to set fresh record highs on bolstered hopes for a soft economic landing, while China’s stocks fell 2.4% to near a two-decade low as investors worry about deflation and capital outflows.
In our bonus deep-dive interview, ANZ’s Chief Economist for Greater China, Raymond Yeung, takes a closer look at the growing numbers of unemployed migrant workers in China’s cities.
5 things to know
US stocks rose around 0.3% by 5am Sydney/Melbourne time to fresh record highs after the US Leading Economic Indicator fell less than expected, bolstering hopes for a soft landing. China’s stocks fell 2.4% overnight.
Taiwan exports fell 16% in December, which was more than expected, says ANZ Economist Bansi Madhavani.
China’s banks left their one and five year lending rates on hold yesterday, with margin protection a key factor, says Raymond Yeung.
ANZ Australia’s observed retail spending figures for December showed fashion sales softer than other categories, says ANZ Australia Economist Maddy Dunk.
The Bank of Japan is expected to hold its policy rate at minus 0.1% today, but the focus is on Shinto wage talks in March, says ANZ Head of FX Research Mahjabeen Zaman.
Cheers
Bernard
PS: Look out tomorrow for the results of Australian business confidence figures today and part two of our deep-dive interview with Raymond about the deflationary effects of large numbers of jobless migrant workers in China.
