Asia’s Largest Economies Hit a Rut
The world economy is looking increasingly bad, Europe is not the savior, and now we know neither China, nor Japan will be either. The recent US employment report was dismal at best.
More after the break.
I don't see a bright light anywhere. It is time to prepare for what may be an ugly economic recession, and possibly a depression in some places.
"Chinese markets were down significantly on Monday, as investors continue to get more bearish about China’s prospects. The SCMP:
The steep losses in mainland markets came after China released a raft of key economic indicators for the first five months of the year, among which fixed-asset investment (FAI) recorded an unexpectedly large drop in growth to 9.6 per cent year-on-year.
On a single monthly basis, FAI growth decelerated to 7.5 per cent in May from 10.1 per cent in April.
“State sector investment remained strong….but private sector investment growth continued to slow and barely expanded at all last month,” said Julian Evans-Pritchard, a China economist for Capital Economics.
Meanwhile, the IMF warned over the weekend that Chinese corporate debt could spark a major financial crisis. Capital flight seems to have sped up: Bitcoin, which many Chinese having been using to get money out of the country, rose above $700 on Monday.
Economic headwinds aren’t just hitting China, however. Fitch lowered its outlook for Japan, sending Japanese stocks falling."
I can spell hard landing, I don't want to! What's the worst that could happen?
"Worsening economic conditions are never good, but they are particular cause for worry when geopolitical tensions between China and Japan are as high as they are."
Oh! Wait, like war tensions? Well, Europe will be able to . . .
Never mind. I am just amusing myself.
If anyone knows of an economic bright spot please let me know.