East Asia Today

There were a few releases in Japan today that were worth summarising. Taiwan's September CPI data was important, showing inflation remaining firm. Korea's Q2 flow of funds offered another illustration of the broad impact that the chip boom is having on the macroeconomy.

Paul Cavey

Oct 7, 2026 • 2 min read

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Taiwan – inflation higher again

Taiwan's price data still don't suggest the economy is overheating. But pipeline pressure is strong, computer prices are surging, indirect energy prices can't be easily controlled by policy, and underlying inflation still looks firm. That all stands out when real interest rates are still negative.

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Japan – manufacturing upturn

The overall impression from all today's releases is continued inflation pressure supported by a stronger mfg cycle. The signs of a fall-off in services momentum, however, bear monitoring, perhaps showing signs that tightening might actually be biting. If so, the implication is a flatter curve.

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East Asia Today

No data releases today, and the work I've been doing on China's global market shares isn't finished. So instead of individual economies, today's daily is a review of regional trade patterns: exports, imports, prices, major products, and balances.