Business sentiment across Taiwan's major industries improved in May, according to data released by the Taiwan Institute of Economic Research on Thursday.
The manufacturing index, which measures sentiment in the manufacturing industry, was up 2.66 points month-on-month to 99.58, the report said.
Sentiment in the services industry similarly rose 3.89 points to 100.62 during May, while the construction index recorded a rise of 9.64 points to 103.99.
Japan will introduce a multi-year budget framework next fiscal year to fund strategic initiatives, including economic security and crisis preparedness, Bloomberg reported Friday citing a government document.Finance Minister Satsuki Katayama outlined the proposal to a government panel on Thursday. The framework will plan spending over several years, funded by taxes, savings, and bonds, while keeping the debt-to-GDP ratio on a downward trajectory, the report said.The move follows the government's pledge to mobilize 370 trillion yen in public-private investment through 2040 in AI and semiconductors, signaling a shift to long-term fiscal strategy, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
The Reserve Bank of New Zealand (RBNZ) is expected to hold the official cash rate at 2.25% in the July monetary policy decision, with consecutive 25-basis-point cash rate increases forecast from September and the rate peaking at 3.25% by early 2027, ASB Bank said in a report on Friday.The recent peace agreement and negotiations between the US and Iran appear to have reduced upside risks to New Zealand's medium-term inflation by lowering the risk of cost shocks moving through into wider price and wage settings. Lower oil prices, if they continue, may lower inflation and reduce the risk of energy prices filtering into inflation over the medium term.The lender's core view remains that monetary policy settings will need to be normalized and the cash rate raised towards neutral levels around 3.25%.
There is an around one-in-four probability of an economic contraction in the June quarter in Australia, based on historical patterns and an estimated 10% chance of a negative quarter in the September quarter, Westpac said in a Friday report.Growth has slowed sharply and is stabilizing at a weak pace, Westpac said. The Westpac-Now indicator projected gross domestic product (GDP) growth of around 0.2% on a quarterly basis in the June quarter, with a range of 0.16% contraction to 0.4% growth. Its projection has year-end growth slowing to 1.7% on an annual basis in the quarter, below the central bank's expectation of 1.9%.The Westpac Monthly Activity Index has declined since November 2025, bringing the index back to levels last seen in the January quarter of 2025. However, Westpac said the fall in the index in May was less than half the decline recorded in April.Elevated interest rates and inflation, a well as ongoing weakness in consumer and business confidence, amid recent policy changes and the conflict in the Middle East, are weighing on activity across the Australian economy, Westpac said. Looking ahead, the risk profile remains skewed to the downside, it added.