East Asia Econ

East Asia Today

A longer note on the implications of the chip boom for China. Also today, the BOJ's charts on underlying inflation, which show the bank's preferred measure of core rising to 2.8% YoY. IP growth in Taiwan slowed in April, but remains at over 20% YoY, and the recovery in retail sales is continuing.

Paul Cavey

May 26, 2026 • 2 min read

Subscribers Only

China – consequences of the semi surge

The surge in semiconductor exports that is such an import theme across the region is also an important dynamic in China. But in China, the semiconductor trade has broader implications: for the trade surplus, import demand, the export outlook, and inflation, both in the region and ROW.

Subscribers Only

East Asia Today

Today has been quiet for data releases. The main indicator of cyclical importance is 10-day upstream price data for China, which show an easing of inflation pressure since May. Elsewhere, Taiwan tourist arrivals data continue to lag behind the big recoveries seen in Korea and Japan.

Subscribers Only

Last week, next week

Two of the cycle themes in the region are the strength of the AI trade, and macro stability in China. These in turn form the context for the third: the impact of the Iran war. If that conflict, finally, is near some kind of resolution, market confidence around rate hikes could actually increase.