Good times in the global economy will not last, the IMF warned on Tuesday as it predicted that a slowdown was likely to be accompanied by trade wars.
In a sombre World Economic Outlook, its twice-yearly economic forecast, the fund highlighted the “jarring” contradiction between broad-based growth momentum and a “similarly broad-based conflict over trade”.
The fund urged nations to use a “window of opportunity” to carry out reforms to boost growth rates before the current upswing — the strongest since 2010 — petered out.
On Wall Street overnight, hefty advances for the tech sector led gains for a second day as positive corporate earnings outweighed lingering concerns over geopolitics and global trade, with the S&P 500 closing up 1.1 per cent.
In Asia Pacific equities, futures tip Sydney’s S&P/ASX 200 index to rise 0.1 per cent at the open, while Tokyo’s Topix is set to gain 0.4 per cent and Hong Kong’s Hang Seng is expected to gain 1.2 per cent when trading begins.
Corporate earnings reports out today include Daiwa House REIT and Ichigo.
The economic calendar for Wednesday is striking a balance (all times Hong Kong):
- 07.50: Japan imports, exports and trade balance
- 09.30: China new house prices
- 12.00: Malaysia consumer price index
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