China and Japan: on different paths

In this week’s CIO Weekly Investment Outlook podcast, the Private Bank’s Chief Investment Officer in APAC, Stefanie Holtze-Jen discusses the Federal Reserve’s pivot for a rate cut this year, and data points leading to September. 

For Japan, Stefanie says the Bank of Japan (BoJ) confirmed its second rate hike for this year (up from 0-0.1% to 0.25%), and also announced quantitative easing.

All eyes are now on next week’s wage data, which will test repriced assumptions for BoJ’s next steps.

Australia and India’s central banks are due to meet this week, and the CIO expects the RBA and RBI to hold steady this month.

In China, recent data disappointments have shown continued weakness so this week’s important trade and inflation data will be even more closely monitored.

Stefanie also discussed the outcome of China’s Third Plenum which committed to long term structural changes, but continues to link these to its short-term goal of achieving 5% growth this year. For instance, by launching a 300bn RMB extended programme to encourage domestic investor trading in consumables.

Tune in and listen to Stefanie’s key thoughts for the week ahead.

For more investing insights, please visit deutschewealth.com 

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