An epidemic control worker wearing protective equipment watches over a line of people waiting to be tested to for Covid-19.
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In all the market euphoria over recent policy moves in Beijing, global investors seem to be missing the signals emanating from Tokyo or Seoul.
Japan’s economy unexpectedly shrank in the July-September quarter. The annualized 1.2% contraction in gross domestic product came despite the yen’s 30% depreciation at the time. Though the yen has bounced back by nearly 10% since then, its highly competitive level during the third quarter did little to support growth via exports.
That suggests the post-Covid-19-era recovery in global growth isn’t panning out as hoped. And for that, officials in Tokyo may have Chinese leader Xi Jinping to thank. Xi’s massive Covid lockdowns effectively put Asia’s biggest economy and top trading nation in neutral, if not full reverse.
South Korea can…
