Investors are waiting for East Asia data

Investors are currently waiting for East Asia for definite clues as for the region’s economic health as well as news from the G20 Finance Ministers meeting, which takes place on Friday and Saturday in Shanghai.   

In Japan, sustained inflation is still elusive and Friday’s Consumer Price index will clearly show that the BOJ is still facing an uphill struggle. Barclays and Mizuho Bank forecast expect inflation to come in at about 0.0%, right after December’s 0.1%. 

It feels like Japan’s inflation is still under pressure because crude priced kept falling in January.   

Notwithstanding the negative rates policy officially imposed in January, the BOJ has already given a clear sign that it might do more if required.

Meanwhile, Hong Kong’s Q4 GDP demonstrated softness.

On Wednesday, John Tsang, Hong Kong's Financial secretary is going to disclose the 2016-2017 Budget, release 2015 Q4 as well as full year GDP figures.

Additionally, Moody's Analytics expect Q4 GDP to decrease its gain to 0.4% from the previous 0.9% result for the previous quarter.

Finally, December’s quarter results are expected to be hit by weakening exports, though relatively positive domestic demand should soften the slump. 

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