Marketmind: Asia's economic spotlight shines on giants China, Japan




  • In Business
  • 2022-08-14 20:03:34Z
  • By Reuters
 

(Reuters) - A look at the day ahead in Asian markets from Jamie McGeever

Economic data from Asia's two economic powerhouses kicks off the global trading day on Monday - a batch of July indicators from misfiring China, and Japan's Q2 GDP report.

We get the first insight into how China's COVID-hit economy started Q3, with July readings of industrial output, retail sales, house prices and urban investment. Economists are generally looking for recovery, albeit gradual.

Chinese stocks snapped a five-week losing streak on Friday to close the week up 0.8%, lifted by the feel-good factor on Wall Street and an easing of Sino-U.S. tensions over Taiwan.

Also on Friday, however, five U.S.-listed Chinese state-owned companies whose audits are under scrutiny by the U.S. securities regulator said they would voluntarily delist from the New York Stock Exchange.

Meanwhile, Japan's economy is expected to have bounced back strongly in the second quarter after contracting in the first, with economists forecasting quarterly growth of 0.6% and annualised expansion of 2.5%.

Japan's yen rose around 1% against the dollar last week - its third weekly rise in four. Could it break convincingly through the 130 per-dollar barrier this week?

The tone across Asia on Monday will also be set by the growing hope that U.S. inflation has peaked. This could further fuel the rally in risk assets, steepen the U.S. yield curve and weigh on the dollar.

Later on Monday, the U.S. Treasury releases its "TIC" data for June, which measures flows in and out of U.S. sovereign debt. In light of the recent political strains, China's demand will be closely watched.

Key developments that should provide more direction to markets on Monday:

Japan Q2 GDP estimate

China industrial output, retail sales, house prices, urban investment data (July)

New York Fed manufacturing index (August)

Fed's Christopher Waller speaks on banking and finance

(Reporting by Jamie McGeever in Orlando, Fla.; Editing by Matthew Lewis and Lisa Shumaker)

COMMENTS

More Related News

Nigeria would consider China
Nigeria would consider China's C919 plane for new airline

Nigeria would consider buying China's newly-certified C919 passenger jet as it grows the country's fledgling carrier Nigeria Air to 30 planes by around 2025,...

Rees-Mogg blocks China from accessing key information about Britain
Rees-Mogg blocks China from accessing key information about Britain's power grid

Jacob Rees-Mogg has blocked China from accessing sensitive information about Britain's power grid amid growing concern about Chinese involvement in critical ...

US imposes sanctions on Indian petrochemical firm over Iran ties
US imposes sanctions on Indian petrochemical firm over Iran ties

The US has imposed economic sanctions on an Indian company for purchasing Iranian petroleum products. These items were then reportedly shipped to China.

China wants to conquer Britain
China wants to conquer Britain's car market - but should you buy their vehicles?

Drivers looking for a new car will typically find themselves browsing models that hail from a select few countries: the US, Germany, Japan, or perhaps France...

Western push on China, Russia at UN rights body faces test
Western push on China, Russia at UN rights body faces test
  • US
  • 2022-10-01 06:54:10Z

Western countries are leading a rare two-pronged push at the U.N.'s main human rights body to better scrutinize the human rights records of two big world...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business