China’s lapse into deflation is fueling jitters across financial markets but money managers say it isn’t necessarily a bad thing. Falling prices in the world’s second-largest economy are likely to translate into lower costs across the globe given China’s status as the factory of the world, according to EdenTree Investment Management and Gama Asset Management SA. Easing inflation will allow central banks to refrain from further interest-rate hikes, and possibly pivot to an easing, to shore up slowing growth. The prospect of slower global price pressures may be one of the few upsides of China’s descent into deflation ... (full story)