Why China’s deflation may be good news for Australia

News Snapshot:

“China keeps exporting disinflation to the world,” wrote Citigroup analysts this week. They said that it could help to hasten moves by central banks in emerging markets to cut interest rates this year, particularly in countries that consume relatively large shares of Chinese goods. “We as investors are only just starting to connect the dots” on how disinflation imported from China might play out across markets, said Luis Costa, global head of emerging markets sovereign debt strategy at Citigroup. “The question is the magnitude.” The prospect of China exporting deflation also matters for developing economies because “potentially, a big Chinese...