East Asia Today

Another round of weak domestic demand data for China. Japan Q2 GDP growth softened, but I thought the details looked ok. Taiwan's FDI into the US is once again increasing sharply.

Paul Cavey

Aug 17, 2026 • 2 min read

Subscribers Only

China – domestic demand still weakening

Retail sales have been anchored around zero for more than a year, property activity is still dropping and FAI is contracting. Nonetheless, IP is growing around 5%, partly because of exports, and the government's attitude suggests that it continues to think that is enough.

Subscribers Only

Last week, next week

China macro isn't weak enough to trigger a change in policy direction. The JPY is weak enough to speed up BOJ tightening and puts pressure on Takaichi to change fiscal rhetoric. KRW is starting to look more interesting than rates, while in Taiwan, domestic demand puts the focus on rates.

Subscribers Only

East Asia Today

China's July money data were soft, but not much worse. Terms of trade data for Korea show strong GNI/nominal GDP growth continues. Headline growth in Taiwan is slowing from crazy rates, but domestic demand is stronger. Also, my guide to China's consumer data.