If heightened anxiety over the U.S. economic and policy outlook were not enough, Asia’s calendar is packed with top-tier economic indicators from China, Japan and Taiwan that will be of potential global significance too.
Japan releases bank lending, trade, current account and revised GDP growth figures, Taiwan releases trade data, and perhaps most important of all, China unveils producer and consumer price inflation figures.
Overseas investors are growing more cautious on Asian stocks. LSEG data show they were net sellers in August, while JP Morgan recently ditched its buy recommendation on Chinese stocks. Chinese stocks on Friday closed at a seven-month low.
The signals from the United States on Friday were probably more nuanced than markets’ negative reaction would suggest. The unemployment rate ticked lower, wage growth accelerated and officials reaffirmed their confidence in a ‘soft landing’.
Fed Governor Christopher Waller or New York Fed President John Williams both said on Friday that it is time to cut rates. But in prepared remarks and question and answer sessions, neither signaled that a 50 basis point cut is in the offing.
