On the data front, China’s PMIs top the bill, providing the first glimpse into how Asia’s largest economy has started the year.
The official manufacturing PMI is expected to remain in contractionary territory for a fourth month, according to a Reuters poll, although edging up to 49.3 from 49.0 in December.
Manufacturing activity has been shrinking for most of the past year, underscoring the wider economy’s lackluster recovery from the pandemic and doubts over its trajectory.
U.S. Treasury Secretary Janet Yellen said on Friday she doesn’t expect major spillovers from China’s economic travails. Beijing has taken steps to inject liquidity into the financial system and shore up the property sector, and markets have responded favorably, at least initially.
There are no policy decisions in Asia this week, although the Bank of Japan on Wednesday sheds more light on its thinking when it releases the summary of board members’ opinions from its Jan. 22-23 policy meeting.
