Wednesday’s calendar in Asia includes Chinese trade figures for July, the latest FX reserves holdings from China, Japan and Hong Kong, and earnings reports from Singapore’s top bank DBS and Japan’s SoftBank Group.
China’s trade data will be under even particular scrutiny given the ratcheting up of U.S. trade and tariff tensions. Export growth is seen quickening, a potential silver lining to the world’s second-largest economy still struggling under a property sector bust, weak consumer demand and the threat of deflation.
Monthly changes in countries’ FX reserves holdings rarely have an immediate impact on financial markets, but anyone with an interest in the dollar’s reserve status will cast an eye towards the latest updates from Beijing, Tokyo and Hong Kong.
That’s nearly $5 trillion of reserves, 40% of the global total. China holds the world’s largest stash, with $3.22 trillion, and Japan is the largest overseas holder of U.S. Treasuries, with $1.13 trillion.
Several leading policymakers in the Asia and Pacific region are scheduled to speak on Wednesday, including Reserve Bank of Australia assistant governor Sarah Hunter, Bank of Japan deputy governor Uchida Shinichi and Bank of Thailand governor Sethaput Suthiwartnarueput.