Forex Flash: Asia faces overheating risks - Nomura (Barcelona) - Nomura economists believe that Asia ex Japan faces overheating risks, but they are cognisant that a China slowdown could take the steam out of Asia´s economies.

Starting with China, they believe that GDP growth should stay strong in H1, but the debt build up and rising inflation should thwart the recovery in H2. Moving to Korea, they feel that the government’s stimulus package should support growth; and they are raising their GDP forecasts and still call for no rate cuts. In Australia, they believe that with the peak in resource investment approaching, the RBA will cut rates by 25bps in 2013.