Next week is full of important economic data releases from Asia that could have global impact. Japan is expected to release data on bank loans, trade, current account and revised GDP growth. Taiwan is set to release trade data and China is expected to release producer and consumer price inflation numbers.
Net selling by foreign investors in August suggests that investor sentiment toward Asian stocks has become more cautious, according to LSEG data. JP Morgan also withdrew its buy recommendation on Chinese stocks, which closed at a seven-month low on Friday.
As unemployment falls and price growth accelerates in the U.S., Fed officials including Fed Governor Christopher Waller and New York Fed President John Williams have said rate cuts are needed but have given no indication that a 50 basis point cut is imminent.
Oil and commodity prices are also falling, reflecting growing concerns about the global economic outlook. Monday’s economic calendar will provide more information. China’s annual consumer inflation is expected to rise to 0.7% in August from 0.5% in July. However, ex-factory prices are projected to fall 1.4% year-on-year in August, suggesting the deflation challenge is not over yet.
Yi Gang, the former governor of China’s central bank, has called for more fiscal stimulus and accommodative monetary policy to combat deflationary pressures.
In other economic predictions, Japan’s second-quarter GDP growth is expected to be revised slightly higher, while Taiwan’s August export growth is projected to more than double to 7.35%. Taiwan Semiconductor Manufacturing Company (TSMC), a key player in the global chipmaking industry and a partner on NASDAQ:NVDA, will be closely watched in light of these trading numbers.
Key economic indicators due on Monday include China’s August producer and consumer price inflation, Japan’s revised second-quarter GDP and Taiwan’s August trade data, which could significantly influence the direction of Asian markets at the start of the week.
