Asia's Growth-Price Balance Shifts Focus Ahead of Key Data Releases

Asia's economic calendar is packed this week, with inflation and trade data from China, Japan, and India that could impact rate expectations. The key question markets are trying to answer is whether Asian growth can hold up without reigniting inflation.

Economists expect China's August consumer prices (CPI) to rise 0.9% year-over-year, while producer prices, a gauge of factory-gate inflation, are seen increasing by 3.6%. This mixed signal could indicate shaky demand at home despite stronger industry conditions.

China's trade data is also expected to be strong, with forecasts calling for another outsized surplus ranging from $107 billion to $119.1 billion. Exports are predicted to jump as much as 27.5%, keeping the narrative of robust global demand alive.

In Japan, investors will watch a revised second-quarter growth estimate and fresh price data for clues on whether the Bank of Japan can adjust its policy towards 'less easy' settings without stifling activity.