[New] Escaping deflation and rising interest rates represent a once-in-a-decade opportunity for Japan's financial sector.
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Further fiscal support will be required to sustainably lift China out of deflation.
Westpac IQ
As Trump's trade war sledgehammers Asia, China's deflation deepens and the number of geopolitical threats grows in real time, hiking rates is a much tougher sell to the Tokyo establishment.
Forbes
New fears around fiscal sustainability have emerged, replacing the prior apprehension over deflation that had overshadowed investor psychology throughout the post-2008 decade.
Calamos Investments
Within Asia, we see deflation risks in Thailand and China, inflation below target in India, and within target in the Philippines and Indonesia.
Nomura Connects
China is trying to boost domestic demand as it fears deflation and an imbalance between production and consumption.
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If Trump is successful in the large-scale reshoring of US manufacturing capacity, goods deflation in the US could come under pressure, making the inflation target more difficult to achieve and bond markets will have to take note.
interest.co.nz
China needs reflation to ease deflation, repair margins, and reduce destructive price competition, but Beijing is unlikely to risk the stronger yuan that would follow.
The Asia Cable
Imported inflation from the energy shock could shift China from deflation to inflation.
youth4planet
EPAM's stock dropped 16-21% on earnings despite $600M + AI revenue guidance, because investors fear AI deflation: faster delivery means fewer billable hours.
First Line Software
China PPI will exit deflation for the first time in 41 months.
investingLive
The current eurozone strategy of deflation in the deficit economies rather than reflation in Germany threatens to force economies out of the currency union.
Centre for European Reform
Last updated: 19 June 2026
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