Daily FNArena News - International

US rates may have peaked but with US growth looking set to slow further, the outlook for Asian equity markets remains mixed.

Earnings results and guidance from Japanese companies has been above expectations for first quarter earnings, which historically has been a key driver of full year performance for the index.

Don’t expect any quick policy shifts, but China seems to be looking for a Plan B.

Danske Bank suggests there remains upside generally to Asian currencies, but the likely winners and losers are split by the policy decisions of their respective governments.

Average land prices in Japan have risen for the first time in 14 years, which could add to the pressure for further increases in interest rates.

CLSA’s July survey of Chinese manufacturing shows a sector enjoying buoyant times, and passing on higher input costs. Expect tougher measurements by the authorities.

DBS suggests the pressure to revalue the renminbi is coming not just from strong domestic growth, with the US likely to again step up its push to have the exchange rate adjusted.

ANZ Bank has revised down its growth outlook for Indonesia, but ABN Amro suggests with monthly data showing signs of bottoming it might be time to start looking for opportunities.

The Chinese central bank has lifted reserve requirements for the banking sector, but ABN Amro suggests such action is not enough to slow growth and more needs to be done now before problems escalate.

The OECD has suggested Japan should be conservative when considering future interest rate increases as deflation remains a threat and reducing government debt should be a higher prioroty.