East Asia Today

China's official PMI continues to point to little growth in the economy. It is difficult to find reasons in the BOJ's official outlook report for the bank not to continue hiking. Korean exports dipped in October, but not because of chips. Taiwan's PMIs fell from September, but the details are mixed.

Paul Cavey

Nov 2, 2026 • 3 min read

Subscribers Only

Japan – no obstacle to more hikes

The unusually long section of analytical boxes in the BOJ's main outlook report shows that the bank has a lot on its mind. That inevitably brings nuance. However, the overall tone is clear: nominal growth remains strong, and financial conditions loose. There's no clear reason not to hike further

Members Only

East Asia in Four Charts

China is so far the only economy showing signs of being hurt by weakening confidence in the AI trade. Data in Korea and Taiwan remain extremely strong, and the BOJ remains worried about upside risks to inflation. That said, markets are more nervous, needing clarity on energy and data centre buildout

Subscribers Only

Last week, next week

China's nominal cycle looks to be slowing again. The rest of the region remains strong, but confidence that this strength can be retained is fraying, and will likely remain under pressure, especially if concerns over the data centre build-out and energy prices worsen again after the mid-terms.