Asia Markets: Chinese inflation data on tap for Asia
By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — Inflation data is due out next week from China and a strong figure will likely prompt expectations of further policy tightening measures.
Wednesday sees the release of inflation figures for April, and economists broadly expect Chinese consumer inflation to show a rise of between 5.1% and 5.2% compared to a year ago, according to a Dow Jones Newswires survey.
Asia Week Ahead: China Data, Toyota Earnings
Chinese inflation data will the focus in Asia next week, with figures due out Wednesday. Companies reporting earnings include Japanese automakers Toyota and Nissan. MarketWatch’s Sarah Turner reports.
That would follow a 5.4% reading for consumer inflation in March, which was well above the official four-year target of 4%. Wholesale prices were up 7.4% in March compared to a year ago.
China has been fighting inflation by raising interest rates and reserve requirement ratios for banks, and a strong figure on Wednesday may well spur more such moves.
China is also slated to release retail sales data and industrial production figures on Wednesday.
Also due out midweek are annual results from Japanese auto maker Toyota Motor Corp.
Nissan Motor Co.
is due to release results on Thursday.
Car makers in Japan have been struggling with production issues since a massive earthquake devastated the country in March.
The Bank of Japan will release the minutes from its latest policy meeting on Monday, when it kept rates at ultra-low levels to help support the economy.
And on Tuesday, the Australian government is scheduled to release its budget.
“The Federal treasurer, highlighting the deterioration in the budget position and the government’s commitment to return the budget to surplus in 2012/13, has talked of a ‘tough budget’,” said Westpac economists.
Trade data will be released from Australia and China on Tuesday, while Australia will release unemployment data for April on Thursday.
Other Asia-Pacific economic news is expected to come from South Korea, with the country’s central bank due to announce its latest policy decision Friday.
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Sarah Turner is MarketWatch’s bureau chief in Sydney.