Investors in Asia are turning their attention to Chinese inflation data on Wednesday, as they anticipate disinflationary pressures to have grown in October. The figures released include producer and consumer price inflation, alongside other economic data such as Japanese bank lending, Indonesian retail sales, and Philippine GDP.
Globally, U.S. bond yields are continuing to slide, oil prices are low, and Wall Street is maintaining its recent gains. This has allowed Asian currencies to rebound, with the Chinese yuan being the strongest in over two months.
People’s Bank of China governor Pan Gongsheng has stated that Beijing will be firm in preventing the yuan from overshooting. Additionally, there is growing interest in Chinese assets from asset managers.
In Japan, the companies releasing their latest reports on Thursday include Nissan, Honda, Sony, and Softbank Group. The yen is slipping below the 150 per dollar mark, and is heading towards the 152.00 mark, which could trigger direct yen-buying intervention from Japanese authorities.
The Philippine peso is likely to be highly sensitive to the country’s third quarter GDP report. The central bank has predicted that the growth will be around 4.5 per cent.
Key developments to watch out for on Thursday include China’s PPI and CPI inflation, Japan’s trade and current account figures, and a speech from the Federal Reserve’s Powell.