China’s slowdown may deepen as policy makers unwind the excesses of a record credit boom while only gradually increasing stimulus, leaving 2012 growth at the weakest in 13 years, Pacific Investment Management Co. says.
“The economy is unlikely to bottom until the third quarter,” Ramin Toloui, Pimco’s global co-head of emerging markets portfolio management in Singapore, said in e-mailed comments May 13. “Policy makers will progressively turn the dial toward more stimulus, but not in the aggressive manner of 2009,” restrained by the goal of tempering the credit-fueled property market, he said.
Asian stocks gain after Wall St rally
Shanghai led several major Asian bourses higher yesterday as traders bet on fresh economy-boosting measures in China, while another record-breaking close on Wall Street also provided support.
Fitch downgrades Japan by one notch
Fitch Ratings downgraded Japan’s credit rating by one notch after the government failed to take steps in this fiscal year’s budget to offset a delay in a sales tax increase, the agency said yesterday