Asia Week Ahead What you need to know 2 - 6 Sept-110128158

Investment Rating - The report does not explicitly provide an investment rating for the industry [1]. Core Insights - The report anticipates that Bank Negara Malaysia (BNM) will maintain its current policy stance due to unexpected growth and rising inflation, which is expected to narrow the real policy rate from 1% in the coming months [2][3]. - Inflation rates in South Korea, Thailand, and Vietnam are projected to decrease to 2.1%, 0.5%, and 4.1% YoY respectively, influenced by favorable base effects on food prices [2]. - Philippine inflation is expected to drop significantly to 3.7% YoY in August, returning within the central bank's target range due to tariff reductions easing rice price pressures [2]. - Indonesia's CPI inflation is forecasted to rise slightly to 2.2% YoY in August, while Taiwan's CPI is expected to remain high at 2.4% YoY, driven by rising food prices due to adverse weather conditions [3]. - Advanced Asian economies are experiencing eased financial conditions, primarily due to rebounds in local equity and sovereign bond markets [3]. Summary by Sections Economic Performance - India's GDP growth slowed to 6.7% YoY in Q2, down from 7.8% in Q1, which is below both the report's and the Reserve Bank of India's forecasts [4][5]. - Singapore's industrial production grew by 1.8% YoY in July, driven by electronics and related manufacturing, despite volatility in the biomedical sector [5]. - South Korea's industrial production contracted by 3.6% MoM in July, marking the worst monthly performance since May 2020 [6]. Inflation Trends - The report highlights that inflation in various Asian countries is showing a downward trend, with specific figures for July and August indicating a general easing of price pressures [2][3]. - The report notes that the inflation trajectory will be closely monitored, particularly in light of potential subsidy rationalizations in Malaysia [2]. Trade and Exports - Hong Kong's exports increased by 13.1% YoY in July, driven by strong demand from mainland China and the US, while imports rose by 9.9% YoY [6].