South Korea’s producer prices fell from a year earlier for the first time in four months on lower computer-component and fresh-food costs, according to a report before the central bank’s decision on interest rates this week.
A Chinese manufacturing index rose and economists have pared forecasts for cuts in interest rates and bank reserve requirements as confidence grows that the world’s second-biggest economy is stabilizing.
China’s inflation and industrial production growth cooled in July, and central banks in Japan and South Korea saw little sign of price pressures, underscoring the scope for monetary stimulus should the European crisis deepen.
South Korean manufacturers’ confidence fell from the previous month to stay near the lowest level since 2009, keeping pressure on the government and central bank to take further measures to stimulate growth.
Japan’s new ambassador to China died this morning following an unspecified illness, the Foreign Ministry said today, five days after his appointment amid an intensifying territorial dispute between the two countries.
China said its restrictions on rare- earth exports protect the environment, are in compliance with its World Trade Organization commitments, and that other countries should step up their exploitation of the minerals after it cut its 2011 export quotas.
Greece leaving the euro would have limited effect on Asia and the Mediterranean country should study such an exit as a way to restore competitiveness, Malaysia’s leader during the 1998 Asian financial crisis said.