China’s factories stayed stuck in the slow lane in April while Japanese output went into reverse and South Korea suffered its worst export performance in two years, adding urgency to calls for more state stimulus in all three economies. Thailand has already surprised by cutting interest rates this week, while speculation is mounting that the Reserve Bank of Australia (RBA) will chop its rates to a record low of 2 percent at a May 5 policy meeting. The need for action is all the greater as China, the former engine of global growth, remains jammed in neutral. China’s official Purchasing Managers’ Index (PMI) held at 50.1 in April, just a fraction above the 50-point mark that separates growth from contraction on a monthly basis. “As the economy still faces strong headwinds and the risk of deflation has not diminished, the authorities will need to continue to […]