Data points from Asia’s two biggest economies, a Bank of Japan policy meeting and minutes from the latest Federal Reserve meeting will likely influence regional markets this week against a backdrop of key trade talks and a meeting of world leaders. Ministerial talks on the U.S-led Trans Pacific Partnership (TPP) free trade pact will kick off Monday in Singapore while global leaders will flock to Manila mid-week for the start of the World Economic Forum (WEF) on East Asia.
Tokyo’s Cabinet Office releases March machinery orders on Monday, which will be closely watched as it is a key read on business investment, an area key to Prime Minister Abe’s deflation-busting strategy. Orders slumped 8.8 percent on month in February after rising to a 10-month high in January; economists surveyed by MNI expect March orders to resume their uptrend and gain 6.3 percent on-month.
Tuesday sees the release of Japanese trade for April, which is widely tipped to show a deficit for the 22nd straight month. March’s reading saw the deficit quadruple to $14 billion as a weaker currency increased import costs.