(Bloomberg) -- Welcome to Tuesday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

  • Risky assets have been reacting more strongly to the Fed’s hawkish monetary shocks, Goldman says, ironically because the central bank is losing its forecasting edge. Donald Trump shelved his plan to appoint Herman Cain to the Fed and Democrats are urging Republicans to also block the president’s other pick, Stephen Moore
  • China’s top policy makers are less worried about the economy and are looking beyond the current downturn to tackling long-term structural reforms, says Qian Wan. President Xi Jinping’s grand Belt and Road Initiative is also getting a makeover: toning down the rhetoric and tightening oversight after allegations of corruption
  • Two of the earliest indicators for Asian trade continued pointing down, undercutting hopes for a rebound as the U.S. and China head toward a settlement. Slowing sales at Caterpillar, a bellwether for the world economy, are likely to add to angst over global growth
  • The Bank of Japan heads into this week’s policy board meeting with downside risks alive and well -- though not as menacing as before China’s economy showed signs of stabilizing, says Yuki Masujima. Masu says any South Korea recovery will be stymied by domestic shortfalls -- a heavier corporate tax burden, higher labor costs and -- in the longer run -- a rapid contraction in the workforce
  • Brazil analysts cut their 2019 growth forecasts to the lowest level ever in a signal of mounting investor pessimism in the economy
  • Turkish President Recep Tayyip Erdogan was confronted with a rare sign of rebellion from his ruling party as former allies attacked his leadership following a sharp deterioration in the economy and stinging losses in local elections
  • Trump’s new crackdown on Iranian oil shipments isn’t stemming the flow of cash to Hezbollah, the Syrian government and Shiite Houthi rebels fighting the Saudi-led coalition in Yemen, despite assertions to the contrary by some U.S. officials
  • The heir to the biggest real estate agency in property-mad Hong Kong doesn’t own a house and won’t inherit his father’s stake in Centaline Group

To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net

To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net

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