Japan’s industrial production
unexpectedly declined and South Korean manufacturers’ confidence
dropped to a three-year low, building the case for extra
monetary and fiscal measures to aid growth.
Production fell 0.1 percent in June from May, when it slid 3.4 percent, Japan’s Trade Ministry said today. The median estimate of 29 economists surveyed by Bloomberg News was for a 1.5 percent gain. The South Korean confidence index for August was at 70 after 81 for July, the central bank said.
The signs of weakness kick off a week that UBS AG says will be among the year’s most important for financial markets, with the U.S. Federal Reserve and central banks in the U.K. and the euro region meeting to consider fresh stimulus efforts. The Reserve Bank of India will release its monetary policy decision tomorrow as it weighs inflation risks against the weakest economic growth since 2003.
“It’s increasingly likely that the Fed and European Central Bank will ease further by September,” said Masamichi Adachi, a senior economist at JPMorgan Securities in Tokyo and a former central bank official. In Japan, the government may implement a supplementary budget by September, with the central bank expanding asset purchases, Adachi said.
Today’s Korean data followed a slide in a measure of the nation’s consumer confidence.
South Korean Finance Minister Bahk Jae Wan said the economy is in a “difficult” situation. “I will do everything I can to find a solution for the sluggish domestic economy,” Bahk said today in a speech to government officials in Gwacheon.
Read more: http://www.bloomberg.com/news/2012-07-30/japan-s-june-industrial-output-falls-as-recovery-loses-momentum.html
Production fell 0.1 percent in June from May, when it slid 3.4 percent, Japan’s Trade Ministry said today. The median estimate of 29 economists surveyed by Bloomberg News was for a 1.5 percent gain. The South Korean confidence index for August was at 70 after 81 for July, the central bank said.
The signs of weakness kick off a week that UBS AG says will be among the year’s most important for financial markets, with the U.S. Federal Reserve and central banks in the U.K. and the euro region meeting to consider fresh stimulus efforts. The Reserve Bank of India will release its monetary policy decision tomorrow as it weighs inflation risks against the weakest economic growth since 2003.
“It’s increasingly likely that the Fed and European Central Bank will ease further by September,” said Masamichi Adachi, a senior economist at JPMorgan Securities in Tokyo and a former central bank official. In Japan, the government may implement a supplementary budget by September, with the central bank expanding asset purchases, Adachi said.
Today’s Korean data followed a slide in a measure of the nation’s consumer confidence.
South Korean Finance Minister Bahk Jae Wan said the economy is in a “difficult” situation. “I will do everything I can to find a solution for the sluggish domestic economy,” Bahk said today in a speech to government officials in Gwacheon.
Read more: http://www.bloomberg.com/news/2012-07-30/japan-s-june-industrial-output-falls-as-recovery-loses-momentum.html
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