East Asia Econ

China – foreign flows stronger than domestic

China's release today of December data for money, credit and fx settlement tell three stories: domestic savings outflows have lost momentum, credit ex-government is looking a bit stronger, and capital inflows are really picking up. If right, the last dynamic is the most important for markets.

Paul Cavey

Jan 15, 2026 • 2 min read

Public Post

East Asia Today

Lots to discuss today: domestic and foreign money flows in China; PPI and export prices in Japan; the BOK's January monetary policy meeting; and the read-through for Taiwan's economy from TSMC's bullish 2026 outlook.

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Korea – "upside risks have increased"

The BOK isn't getting carried away by the remarkable rise in semiconductor prices, but it did today say the chip cycle is moving growth risks to the upside. It also terminated talk of rate cuts, though that isn't just about growth, with the bank making clear that KRW weakness is a key consideration.

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Japan – PPI still firm

Japan's current run of PPI inflation is almost the longest since at least the 1980s, but looks well-supported. Prices have recoupled with the global cycle, and are being boosted by JPY weakness. Furthermore, while it was feared that tariffs would be deflationary, export prices are rising.