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Korea Hike Odds, China Crackdown Price, Global Chains: Eco Day

Korea Hike Odds, China Crackdown Price, Global Chains: Eco Day

Welcome to Thursday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

  • South Korea could become first major economy in Asia to raise interest rates on Thursday as its central bank wrestles with the competing tasks of taming asset bubbles and supporting the economy. But it’s a close call, with analysts split over their forecasts.
  • If the Fed surprises with a taper when conditions aren’t right, U.S. GDP at the end of 2022 would be about 0.7% lower, and 10-year yields around 30 basis points higher, says Bloomberg Economics’ Björn van Roye
  • China’s campaign to clamp down on industries ranging from steel to education has roiled markets and curbed the growth outlook
  • A supply chain crunch that was meant to be temporary now looks like lasting well into next year as delta upends factory production in Asia
  • There’s an optimistic outlook on Afghanistan being pushed by Beijing: The Taliban form an “inclusive” government, allows a minimal level of basic human rights, and fights terrorist elements that want to strike the U.S., China, India or any other country
  • Japan’s economic recovery will be delayed more than previously expected due to the delta variant, a central bank board member says
  • India’s economy held steady in July as waning Covid-19 cases paved the way for a gradual improvement in manufacturing and services
  • Switzerland’s recovery is at risk of an abrupt end as the pandemic resurges and supply-chain issues disrupt the export-reliant economy
  • South Africa’s economy is 11% bigger than previously estimated, after statistics authorities changed the way they calculate GDP
  • Chinese virologist Zhang Wenhong, is among a slew of recent high-profile targets in a campaign by nationalist web users to harass anyone they deem critical of China’s government

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