Central bank sensitive shares face week of data By Reuters

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© Reuters. An electronic diagram showing the rise of Japan’s Nikkei shares is seen in Tokyo, Japan March 4, 2024. REUTERS/Kim Kyung-Hoon

By Alden Bentley

(Reuters) – A look at the day ahead in Asian markets.

Investors in Asia may prefer to play it conservative ahead of a host of economic indicators in the coming days, with Japan’s stock market in particular showing consecutive gains and Friday’s market close elsewhere, including China.

225 was not unique last week, extending their meeting on Thursday and Friday. While central banking signals are coming from the Federal Reserve, the Swiss National Bank and the Bank of England, it was the Bank of Japan that started the central banking issue by ending the long-standing policy of controlling yields and negative interest rates. a sign of confidence in Japan’s economic recovery.

But Wall Street and other exchanges paused on Friday to read the data and Japan could be due for its own period of consolidation in the coming days.

Japan also updates its leading indicators for January on Monday with PPI data, while the Tokyo CPI is due on Thursday. Consumer price inflation data is also due from Malaysia and Singapore on Monday.

YUAN’S SLIDE May Disrupt Again

The biggest worry for the region’s currency is Friday’s four-month low on the weak side of 7.2 per dollar. It ended the US share at 7.2759 amid market expectations that Beijing should provide more money to support economic growth. The yuan fell on the Chinese stock market [.SS] and force the Philippine peso, Indian rupee, Indonesian rupiah, Korean won and Thai baht.

Meanwhile, Premier Li Qiang on Sunday said that China will carefully study the issues of market access and data flow across borders and will soon issue new regulations in these areas.

“We warmly welcome companies from all countries to invest in China and expand their footprint in China,” Li told a group of global CEOs and Chinese policymakers.

Friday’s gains boosted gains in stocks on Wall Street and Europe, a day after they hit new all-time highs. It closed 0.14% lower and the Nasdaq rose in line.

Switzerland’s surprise low on Thursday fueled the idea that, BOJ aside, developed central banks are cutting interest rates soon.

That view apparently includes the Fed, which on Wednesday left the fed funds rate at 5.25% to 5.50% but signaled it was still prepared to cut rates by 75 basis points this year, despite a worrying rise in US inflation and strong enough economic growth. maybe escape with a soft landing.

Most markets in Europe and the US will be closed on Friday, Friday. What happens, since it is not a US pubic holiday, the most important data of the week, the index of spending money for February, falls when the markets are closed. But Asia will be the first markets to trade next Monday.

At this point there isn’t much incentive to shop during the shortened holiday weekend. The Chinese market is also closed but the Japanese market is open.

Here are the key events that will provide guidance to the markets in the coming week:

– Malaysia CPI (Feb)

– Singapore CPI (Feb)

– Japanese symbols were also updated (Jan)

– Japan services PPI (Feb)

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