East Asia Today

China's upstream price data confirm the rebound in costs seen in the PMI. Nonetheless, the PBC continued to inject liquidity in September. Details of aggregate household incomes in Japan in Q2 are useful for understanding Japan macro, though the data don't all point in one direction.

Paul Cavey

Oct 9, 2026 • 2 min read

Subscribers Only

Japan – household incomes still weak

Q2 aggregate consumption was weak because incomes were too. Asset incomes are rising, but wages are soft, and in cash terms, the tax burden has been increasing. But while spending in aggregate terms is constrained, the population is falling, so in per capita terms there is actually recovery.

Subscribers Only

East Asia Today

The BOJ's regional report, an important input into the monetary policy process, showed strength in industrial activity and inflation. Korea's August CA surplus rose again, implying higher nominal GDP growth. Far from slowing down, Taiwan's exports in September accelerated again.

Subscribers Only

Korea – net exports v flows

The strength of the current account in August shows Q3 will be another blowout for nominal GDP, improving all Korea's macro ratios. That provides cyclical and structural reasons for KRW strength and relative outperformance of longer-term KTBs. The headwind remains equity outflows.