East Asia Econ

East Asia Today

Data on FX reserves and PBC liquidity operations in December suggest the PBC balance sheet has become more supportive for growth. The Japan services PMI was weaker, but the commentary doesn't suggest a real change in direction. Services prices suggest core inflation in Taiwan has bottomed.

Paul Cavey

Jan 7, 2026 • 3 min read

Public Post

China – the case for a floor

My latest video, discussing the lessening of deflationary pressure, whether that can continue, and what the implications are for markets.

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East Asia Today

More charts than usual on Japan today, with the Q3 sakura report and output gap from the BOJ, November wages, and December consumer confidence. Also, Q3 flow of funds data for Korea, which offers another perspective on the outflows that have been weighing on the KRW.

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Japan – wage data mixed, but sentiment firm

The BOJ's quarterly regional sakura report shows conditions holding up, and the dip in consumer confidence in December isn't concerning given the post-March bounce. Wage growth in November was mixed, but can be expected to rebound in December on stronger bonuses.