Rock-Star Economies Flop, World Recession Fears Rise: Eco Day

(Bloomberg) -- Welcome to Thursday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

• Australia and New Zealand now find themselves with just 1 percentage point of conventional monetary policy remaining. So what’s happened to the once outperforming economies?
• A moderate reduction in Federal Reserve interest rates may not be enough to offset a slowing global economy that could unleash powerful forces that push the U.S. into a downturn
• Meantime, the escalating trade war between the U.S. and China is nudging the world economy toward its first recession in a decade with investors demanding politicians and central bankers act fast to change course
• Pakistan downgraded diplomatic relations and suspended bilateral trade with India after New Delhi revoked seven decades of autonomy for the disputed Muslim-majority state of Kashmir
• Japan’s economy slowed sharply in the second quarter but will still eke out some growth, thanks to the nation’s consumers
• Thailand unexpectedly cut its benchmark interest rate Wednesday for the first time in more than four years to boost the economy, and said it sees more room to ease
• After a two-year slide, Australian house prices look to have bottomed out, sending buyers flocking back to the market

To contact the reporter on this story: Chris Bourke in Sydney at cbourke4@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Michael Heath

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