East Asia Econ

China – prices and demand deposits stable

The FAI data point to the economy hitting a wall. But price data don't bear that out. Indeed, upstream prices show the recent stability of PPI is likely persisting. That is also true for the demand:time deposit ratio. The cycle as a whole remains both weak and messy, but there are some green shoots.

Paul Cavey

Nov 24, 2025 • 2 min read

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Last week, next week

Japan is doing macro stimulus when the cycle really doesn't need it. China isn't doing any when the cycle still does. The first keeps the JPY weak. The second prevents the CNY from appreciating. Both in turn weigh on the KRW and TWD, despite substantial current account surpluses across the region.

Public Post

East Asia Today

The big releases today were Japan CPI and trade for October and November PMIs, and Korean October PPI and exports for the first 20 days of November. Also, a longer note on Korean capital flows, and an update of the detailed trade data for China shown in our interactive dashboard.

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Japan – cycle and inflation still ticking the boxes

The BOJ's base case has been that tariffs would slow inflation and growth. Today's data – November flash PMIs, and October trade and CPI data – give no indication that such slowdowns are occurring.