(MENAFN– ecpulse) Asian markets are waiting for many critical economic data to be released this week, like rate decision for BOJ and RBNZ, as well as China’s trade data.
The Chinese economy will release its trade balance reading for May, where the previous reading recorded a surplus by $18.43 billion, while expectations were leading to a surplus of $16.40 billion. Exports recorded the previous month 4.9% gain, as analysts expect an incline with 7.2%.
Last week, The People’s Bank of China met expectations and speculation and acted in favor of slowing growth. China cut the interest rate for the first time since 2008 amid the global slowdown and deepening debt crisis in Europe, which weighs on growth in the world’s second largest economy. The People’s Bank of China lowered the one-year deposit rate by 25 basis points to 3.25% effective Friday; the bank also lowered the one-year lending rate to 6.31% from 6.56% by also 25 bps.
From another side, the Bank of Japan will announce its monetary policy decision, where the ratio was between 0.0% and 0.10% amid the instability of Japanese economy and stronger currency that negatively affected the nation’s exports.
The Japanese economy expanded by 1.2% in the first quarter and of 4.7% on the year compared with the previous reading of 4.1% last year’s first quarter revised higher from the previous estimate and above expectations.
The eyes are still on the BoJ for a chance of more easing to stem the yen’s rally which is the most critical to preserve the fragile recovery amid the global slowdown and raging debt crisis in Europe.
As for the Reserve Bank of New Zealand, the bank is likely to hold key rates steady again at the historic low of 2.5%. The economy is still resisting the downside pressure of slowing global growth and supported by the rebound after the natural disasters, the economy is enjoying the space with easing price pressures yet slowing growth will soon weigh on commodities and exports and might prompt the bank to act to support growth, but for now we expect the decision to remain steady.
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