Inflation data will take center stage in Asia this week with a spate of consumer price index releases. Several economies are expected to report easing inflationary pressures, which could expedite the reduction in borrowing costs.
The week ahead also features Malaysia's monetary policy announcement, Australia's second-quarter gross domestic product, and regional PMI reports.
Offshore, the US jobs data due Friday will be a market-moving release as it could potentially impact the Federal Reserve's rate cut decision.
Here are the things to watch in the next few days.
Monday
China's Caixin Manufacturing PMI climbed to 50.4 in August from 49.8 in July, indicating that factory activity moved above the 50 threshold separating growth from contraction.
The rebound was driven by new orders returning to growth, spurring faster production in Asia's biggest economy.
Japan and South Korea also saw increased manufacturing activities in August.
Meanwhile, the Judo Bank Manufacturing PMI came in at 48.5 in August, versus 47.5 in the previous month, indicating that conditions in Australia's manufacturing sector improved.
In contrast, data from S&P Global showed that India, Indonesia, Taiwan, and Thailand all recorded weaker factory activities in August compared to July.
The S&P Global Philippines Manufacturing PMI stood at 51.2 in August, unchanged from July, signaling that the sector sustained modest improvement in operating conditions.
Similarly, Malaysia's manufacturing PMI held steady at 49.7, indicating that the sector continued to contract in August.
Separately, official data showed that Indonesia's annual inflation rate cooled to 2.12% in August from 2.13% in the prior month. The core inflation rate, on the other hand, rose to 2.02% from 1.95%.
Tuesday
South Korea will report its consumer inflation rate for August, with the consensus pointing to a moderation.
"With a high base last year, [Korea's] headline inflation should ease below 2% for the first time since March 2021. Food prices are likely to add upward pressures but will be partially offset by falling gasoline prices. Getting inflation back below 2% raises the likelihood of a BoK rate cut in October," ING Bank said in a note.
Additionally, New Zealand will release its second-quarter export and import prices.
Wednesday
Australia's biggest banks predict a slight lift in the nation's economic growth for the June quarter after GDP expanded 1.1% year over year in Q1 and 0.1% on a quarterly basis.
Westpac expects a 0.3% qoq and 1% yoy rise in Australia's Q2 GDP, while CommBank sees a 0.2% qoq and 0.9% yoy growth. NAB anticipates a 0.1% qoq and 0.8% yoy expansion.
Services PMIs for China and India will also be published on Thursday, alongside the August PMI readings of Hong Kong and Singapore.
Thursday
The Philippines, Taiwan, and Thailand are all expected to report easing inflationary pressures.
Consumer prices in the Philippines are forecast to have risen 3.3% year over year in August, a substantial decline from 4.4% in the previous month.
"We should see further falls in inflation next month. The BSP made a brave decision to cut rates last month ahead of the US Fed, and these data should enable them to cut rates again soon without imperiling the PHP," ING Bank said in a note.
Taiwan is likely to report a CPI pullback from July's 2.5% yoy print to 2.2% yoy in August, while Thailand will announce a cooldown in inflation, according to estimates from Trading Economics.
Meanwhile, Malaysia's central bank is widely projected to maintain current lending rates. Bank Negara Malaysia is seen holding its overnight policy rate steady at 3%.
Other key data due Thursday are Singapore's retail sales, Australia's exports, and South Korea's final Q2 GDP.
"We expect the July goods trade balance to print at $A5.5bn, a similar surplus to June. There were marginal falls in commodity prices over the month. Imports should remain largely unchanged as well," CommBank Research said in a note.
Friday
Vietnam will release several indicators, including trade balance, inflation data, retail sales, and tourist arrivals. The Philippines will announce its jobless rate and industrial production numbers for July.
Saturday
China will unveil its latest trade figures. Trading Economics expects Chinese exports and imports grew 6.8% and 3.5%, respectively, in August, slowing from 7.0% and 7.2% in July.
