Asia Economics Comment
Markets have been flying this year. Well, you will have noticed. We’llleave our strategists to comment on the finer details. From aneconomic perspective, much has to do with a string of upsidesurprises to growth and downside surprises to inflation. Questionis: will the pattern endure in 2018? Growth looks solid enough.
Asian exports should cool a tad into year-end, but that now looks tobe a relatively shallow and possibly temporary affair. Local demand,meanwhile, is chugging along, although China’s slowing housingmarket bears watching. The risk, therefore, lies with inflation. Sure,it’s been remarkably muted, but there are a few blips here and therethat seem to signal price pressures will gradually climb over thecoming year. Oil is one. Pay heed.