East Asia Econ

East Asia Today

Today, an update on the household sector in Japan with May wage and consumption data. Also, inflation data for Taiwan in June, and the Q1 flow of funds in Korea showing equities now account for 30% of household assets, up from 20% just a year ago.

Paul Cavey

Jul 7, 2026 • 2 min read

Subscribers Only

Taiwan – real rates universally negative

June's core inflation of 2.3% isn't high in an absolute sense. But outside LNY, it is the highest since the 1990s, and, remarkably, above both the policy rate and 10-year yields. Energy inflation will ease, but with wage growth of 2.7% and rising, and equity prices strong, rates really look too low.

Subscribers Only

Japan – wages don't fully explain stronger spending

Today's May consumption activity data were stronger again. That rise can be explained by three factors: a temporary boost as purchases of household appliances are brought forward, decent – though in May, not necessarily stronger – wage growth, and perhaps, a wealth effect as asset prices rise.

Subscribers Only

East Asia Today

Upstream prices in China fell at the end of June, showing the feed through from the decline in the global oil price. Data on Friday showed a modest positive output gap in Japan. FX reserves in Taiwan dropped moderately in June.