Weak Data Emerges From Asia
2022.11.15 07:09
The statistics packages from China and Japan – the largest economies in the Asian region – came out below expectations, highlighting weak domestic demand and production.
Japan’s economy lost 0.3% in 3Q22
Japan’s 0.3% in the third quarter while it was expected to grow by the same amount. Meanwhile, added 1.8% y/y. A jump in was responsible for the decrease, while showed a relatively moderate positive contribution.
Japan’s Industrial production lost 1.9% in September
lost 1.9% in September, reversing a sharp turnaround after three months of growth, during which the index increased by 13.4%. A jump in energy prices prevents production from taking full advantage of the weaker . China’s slowdown will likely constrain Japan’s industry by not giving it enough orders.
China noted a 0.5% y/y fall in thanks to 0-covid restrictions. These are gradually easing but remain much more restrained than in other major economies worldwide. growth slowed to 5% y/y last month versus 6.3% in September.
China noted a 0.5% y/y fall in retail sales
Weighing retail sales and manufacturing numbers would be enough of a signal for the government to step up support to the economy.
Considering the weak data from Japan and China, their currencies have particularly strengthened this month by 6.5% and 4%, respectively. Currency volatility risks hurting exporters for whom exchange rate stability might be a better option after a slump since the start of the year.
