Asia Braces for Rate Hike, PMI Data, and Inflation Surprises

The upcoming week in Asia is expected to be filled with significant economic data releases and monetary policy decisions. On Tuesday, the Reserve Bank of Australia (RBA) is set to raise interest rates by 25 basis points, reflecting the country's strong economy and rising inflation.

Meanwhile, China will release its purchasing managers' index (PMI) data on Wednesday, which is expected to show a slight recovery in manufacturing and non-manufacturing activities. The RatingDog PMI, which focuses on export-oriented industries, will also be released the same day.

In Japan, activity and inflation data will be closely watched, with the release of August services price index (PPI) on Monday. Market consensus is for services inflation to remain unchanged at 3.6% year-over-year, while retail sales growth is expected to moderate to 3.2% YoY.

South Korea's trade data is also due out next week, with a forecasted widening of the country's trade surplus to $38.4 billion in September, driven by continued strength in technology and semiconductor exports. Indonesia's CPI inflation is expected to accelerate to 3.3% year-over-year, fueled by higher food prices.