Mixed messages from Asia - and a reminder of less recent risks - as a survey shows China's economy rebounding in the second quarter, but Japan factory orders at a three-year low. David Pollard reports.
Asian share markets ended up on Thursday as they became a little more sanguine about the new risks they face. That doesn't mean the old ones have gone away. Japanese industrial output sliding at its fastest in three years. Down 2.3 per cent in May on weaker exports and a slow recovery in consumer spending. Next up in the data diary will be the Bank of Japan's key Tankan survey. Likely to show consumer confidence at a three-year low, it may also shift an unwelcome spotlight on the QE and negative rates policy of the BoJ itself. Amid signs of policymaker dissent over whether its two percent inflation target is realistic. (SOUNDBITE) (English) FXPRO, HEAD OF RESEARCH, SIMON SMITH, SAYING: "Back in early 2014 they literally threw the whole kitchen sink at the issue. Yes, there was some impact but we're now at a stage where the yen is rising and the policy measures they have undertaken have not really had any meaningful impact." China - another worry eclipsed by Brexit - has some positive data. The Beige Book survey showing its economy rebounding in Q2. That coming though, even as it warned the pick-up might be short-lived. (SOUNDBITE) (English) FXPRO, HEAD OF RESEARCH, SIMON SMITH, SAYING: "Naturally, the attention has been diverted by other matters ... But nevertheless, I still think that China is walking quite a difficult tightrope as it looks to rebalance its economy" China's central bank is reportedly willing to let its currency fall to 6.8 per dollar this year to support the economy. That would be a fall equivalent to last year's record four and a half per cent decline. A move that would heighten tensions with trading partners keen to avoid an all-out so-called 'currency war'.