The worst of the declines in Asia- Pacific economies may be moderating, as Taiwan resumed growth last quarter, South Korean production climbed for the first time in four months and Singaporeâ€™s jobless rate fell.
Gross domestic product in Taiwan grew 1.02 percent from a year earlier, after a 0.18 percent decline the previous quarter, a report showed today. South Koreaâ€™s industrial output rose 0.8 percent last month from August on stronger car and electronics sales, while Singaporeâ€™s unemployment rate eased to 1.9 percent, the lowest since the first quarter of 2011.
Pedestrians walk past stores in the shopping district of Ximending in Taipei, Taiwan. Signs that Chinaâ€™s growth is recovering have brightened the outlook for the regionâ€™s exports and boosted currencies. Photographer: Lam Yik Fei/Bloomberg
Chinaâ€™s economy has shown signs of rebounding this quarter, boosting the outlook for the regionâ€™s exports. While Asian stocks rose today, the recovery in growth may be constrained by Japanâ€™s persistent slump and limited expansions in the U.S. and Europe, sustaining pressure for policy stimulus in some Asia- Pacific countries.
â€œWe may be seeing a bottoming in Asia but there wonâ€™t be a strong recovery in the short term, given the global environment,â€ said Edward Lee, a Singapore-based economist at Standard Chartered Plc. â€œThere are still a lot of potholes in the world economy which will clearly have an impact on Asia. In some places, we are still calling for more monetary policy easing,â€ including South Korea and Thailand, he said.
The MSCI Asia Pacific Index (MXAP) added 0.6 percent at 12:06 p.m. Tokyo time, trimming a monthly loss. South Koreaâ€™s won touched a 13-month high while the Australian and New Zealand dollars rose after data showed better-than-expected building approvals in September for both countries. The Taiwan dollar gained 0.2 percent against the U.S. currency as of 11:21 a.m. in Taipei.
Via – Bloomberg
Asia Currency Basket (1M)
Though Asia economy appears to be recovering, the same cannot be said for their currencies, which has actually depreciated against USD significantly over the past month. Safe haven flows can be attributed to USD strength, but perhaps US fundamentals are also helping, with GDP, Goods Orders and various economic indicators posting better than expected results recently.
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