Daily FNArena News - International

CLSA’s monthly manufacturing survey in China saw activity soaring to a four month high, with inflationary pressures picking up as well.

China’s retail sales were up but industrial output down in October, the data supporting the view the economy will slow but a soft landing will be achieved.

With kind permission from Tim Price, FN Arena publishes his column on BRICs. Recommended by your editor.

Morgan Stanley suggests the latest comments from BoJ Governor Fukui suggest a more forward looking approach to interest rates, with the goal of a more stable environment for the economy.

The Bank of Japan’s half-yearly review of economic conditions has seen inflation expectations revised down, but continues to suggest there will be further increases in interest rates.

Lehman Brothers has cut its forecasts for Chinese growth next year, expecting a fall in exports to limit the increase in GDP to something below 10%.

HSBC has come away from meetings with government officials and analysts with the view the political and economic situation in Thailand is relatively stable leading into next year’s election.

Macquarie suggests interest rates will mover higher in Japan, but the timing of further increases will be influenced by the level of the yen to the US dollar.

Forecasts for the yen against the US dollar are being revised lower, but conditions are in place for the Asian currency to rally against the greenback into next year.

Macquarie economists believe the macro picture in China is turning positive for the first time in six months.