Key economic data and central bank insights will steer Asian markets this week.
Monday's flash PMI releases reveal contrasting trends across Australia, India, and Japan, while Singapore's inflation data offers a crucial look at price pressures in the city-state.
Later in the week, the Bank of Japan's meeting minutes and summary of opinions will be closely watched for monetary policy signals.
Trade and inflation data across the region will provide further insights into economic health and market direction.
Here's a breakdown of the key events to watch this week.
MONDAY, March 24
Australia, Japan, and India Flash PMIs
Australia: The S&P Global Manufacturing Flash PMI stood at 52.6 in March, up from 50.4 in February. The Services Flash PMI rose to 51.2 from 50.8. The readings indicate strong growth in manufacturing and services activity.
Japan: The Jibun Bank Manufacturing Flash PMI fell to 48.3 in March from 49.0 in February. This marked the ninth straight month of contraction in Japan's factory activity. Meanwhile, the Jibun Bank Services Flash PMI saw a steep decline to 49.5 from 53.7.
India: The HSBC Manufacturing Flash PMI rose to 57.6 in March from 56.3 a month prior, denoting faster expansion in factory activity.
Meanwhile, official data showed that Singapore's annual inflation rate declined to 0.9% in February, a three-year low and below market forecasts of 0.95%, from 1.2% in the previous month.
The slowdown was attributed to moderated price increases in food and transport sectors.
TUESDAY, March 25
The Bank of Japan will publish the minutes of its January meeting when it raised its policy rate to 0.5% from 0.25%.
Additionally, Taiwan will release its industrial output and retail sales report for February.
"The impact of the Lunar New Year may result in a sharp uptick in YoY [industrial production] growth to the high teens, with our forecast at 19.6% YoY," ING Bank said in a note.
The People's Bank of China is set to announce its medium-term lending facility rate on Tuesday. ING economists expect the one-year MLF rate to remain unchanged at 2.0%.
Hong Kong's trade numbers will also be available on Tuesday, as will South Korea's consumer confidence data.
WEDNESDAY, March 26
Australia's big banks anticipate little to no change in February's monthly CPI indicator.
Westpac and Commonwealth Bank of Australia foresee inflation holding steady at 2.5% year-on-year. NAB, on the other hand, predicts a marginal drop to 2.4% YoY.
Meanwhile, consensus estimates suggest Singapore's industrial production growth slowed to 7.9% in February from 9.1% in January. The official figures are due Wednesday.
THURSDAY, March 27
Data on China's industrial profits will be released on Thursday. Markets will watch for any signs of a turnaround following declines in 2024.
Malaysia's producer prices and Taiwan's consumer sentiment will also be published.
Trading Economics expects a moderation in Malaysia's factory-gate prices and a slight easing in Taiwan's consumer confidence.
FRIDAY, March 28
Tokyo inflation figures will give further insights into Japan's inflation outlook.
Economists surveyed by FXEmpire expect the annual inflation rate in Japan's capital to accelerate from 2.9% in February to 3.1% in March.
In contrast, ING expects Tokyo's annual inflation rate to ease to 2.7% in March due to energy subsidy programs and stabilization of fresh food prices.
The Bank of Japan's summary of opinions from its March meeting, due Friday, will be closely watched for signals regarding the timing of the next interest rate increase. It will also offer clues into the BoJ's view on inflation, tariff developments, and economic outlook.
Philippine trade figures, Thailand's industrial output and retail sales numbers, and Singapore's export prices will also be released at the end of this week.
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