China Closes on U.S., No Taper Nightmare, Japan Spends: Eco Day

(Bloomberg) -- Welcome to Tuesday, Asia. Here's the latest news and analysis from Bloomberg Economics to help you start the day.

When will China overtake the U.S. to become the world's biggest economy? Few questions are more consequential
For all the worries of emerging markets staring down a repeat of the Taper Tantrum, policy makers in Asia should be considerably calmer
Japanese household spending jumped again amid data distortions, posting another double-digit increase compared with 2020's dismal results even as consumers weathered renewed virus restrictions
OPEC+ was plunged into crisis as a worsening fight between Saudi Arabia and the United Arab Emirates blocked an oil-supply increase
The Danish central bank's defense of the krone's peg to the euro has prompted speculation that it may have to cut rates
India's economy is steadily rebounding as it emerges from a second virus outbreak, Abhishek Gupta says, citing high-frequency data
Calls are growing for China's government to boost fiscal stimulus regardless of the economy's high debt levels, an approach that has drawn comparisons with an unconventional economic theory
Bank of Japan Governor Haruhiko Kuroda and his board are likely to offer incentives for lending in the battle against climate change. Meantime, the Bank of England may cut the amount of miles staff can travel by air to hit increasingly stringent environmental targets
Canadian consumers and businesses are entering the second half of the year brimming with confidence about their economic prospects
The Bank of Israel lowered its economic growth forecast for this year but expects next year's output to approach pre-pandemic projections
Saudi Arabia said it would exclude from a tariff deal imports from free zones or those linked to Israel, signaling growing strains in relations with the UAE, which has normalized relations with the Jewish state
Consumers may get some respite from surging food prices in the coming years as demand growth slows and output rises