Singapore’s rich face more taxes. Chinese households cut spending. Global economic risks are increasing. Here’s what you need to know today.
Stocks in Asia are bracing for a cautious opening as growing signs of a sharp economic slowdown seep into global markets. Futures pointed to subdued starts in Japan, Australia, and Hong Kong after tech firms such as Tesla and Apple helped the S&P 500 close on Monday. U.S. data indicated a rapid cooling of manufacturing and falling sentiment from homebuilders, adding to economic risks after weak Chinese figures. The dollar rallied as Treasuries rose, lowering the 10-year U.S. yield to 2.79%.
China’s military said it conducted new patrols around Taiwan to “defend itself” against another visit by the U.S. Congress, less than two weeks after House Speaker Nancy Pelosi traveled to Taipei. The move came as a delegation led by Sen. Ed Markey, a Democrat from Massachusetts, continued a two-day visit to the democratically governed island. Thirty-three U.S. lawmakers have visited Taiwan so far under The Joe Biden administration, forcing the president to test Beijing’s red lines, whether he wants to or not.
New Expat Hotspots
As Covid lockdowns, political turmoil, and rising costs drive Hong Kong’s expats, and rival Singapore raises the bar for imported labor, young professionals seeking adventures and careers abroad face a dilemma. Where does it continue? In a bid to identify the cosmopolitan hot spots of the future, we spoke to six workers who, from the beaches of Rio to the tech hub of Bangalore, are taking the road less traveled.
What we’ve been reading
- Ikea shoppers panic after security closes the store due to Covid risk.
- The Fed’s past crises hold secrets to address future recessions.
- Why isn’t the new “Langya” virus worrying me (yet)?
- A full-scale nuclear war could kill 5 billion people, a study shows.
- Protests against rising energy bills spread across the UK.
- Michael Burry’s hedge fund added one stock and got rid of the rest.
And finally, this is what Garfield is interested in this morning
The impressive rally in the U.S. dollar this year was accompanied by a pullback in Asian central banks’ currency holdings. That’s a big deal because the region has more than half of the world’s foreign exchange reserves, including seven of the largest foreign exchange reserves of this type.
Garfield Reynolds is Bloomberg News’ chief rates correspondent in Asia, based in Sydney.
— Assisted by Garfield Clinton Reynolds