The tech recovery story is brightening for many Asian countries. South Korea's GDP recently showed a promising reversal. Many central banks in Asia are eyeing the Federal Reserve's moves as they consider rate cuts. This trend of rate cuts may soon spread across the region, excluding Japan and China.
The recent growth numbers from North Asian countries, including Singapore, have been unexpectedly positive. This is largely due to the tech recovery. Exporters in these regions are benefiting from the AI boom, which boosts growth.
If the Federal Reserve cuts rates in September, other central banks in Asia may follow. This could help reduce the pressure on Asian currencies. Many countries have felt this currency pressure in recent months.
Singapore, for instance, has kept its inflation forecast steady at 2.5 to 3.5%. Officials there think inflation might ease to around 2% next year. This suggests a possible window for easing monetary policy. Some experts believe a move might happen as soon as October, even though the current base case suggests 2025.
India's situation is also intriguing. Even with potential easing in October, the strength of the Indian rupee against the dollar remains a topic of interest. The tech recovery and AI boom offer a positive outlook for this region. These factors could lead to decisions that impact the broader economic landscape in Asia.