Japan will be the market to watch this week on the back of key economic releases and as earnings season in the world’s third-largest economy kicks into full gear. Data from China and a monetary policy decision from the U.S. Federal Reserve will also be in focus for traders.
Japanese employment, household spending and retail sales for the month of June are all due for release before Tokyo’s market open. The country’s unemployment rate is forecast to remain at a sixteen-year low of 3.5 percent, unchanged from May’s reading. Moody’s Analytics sees household spending dropping 4 percent on month, compared to May’s 8 percent slump, but warned of a brighter outlook ahead.
Finally, the week ends with China’s official purchasing manager’s index (PMI) for July. A flash reading from HSBC last week showed manufacturing activity at an 18-month high of 52 and investors will be watching to see if Beijing’s figure will extend gains from 51.0 in June. The 50-level separates expansion from contraction.