Week Ahead for FX, Bonds: U.S. PCE Inflation -2-

On Monday, eyes are also on New Zealand's trade figures for August. Markets will look for clues on how the economy is faring so far this year, after recent figures showed it contracted less than expected in the second quarter.

JAPAN

Results of September consumer prices for the Tokyo metropolitan area will be closely watched on Friday.

The core consumer-price index, which excludes volatile fresh food prices, is expected to have risen 2.0% in September from a year earlier, according to economists surveyed by data provider Quick. Core CPI rose 2.4% in August. Tokyo figures are considered a leading indicator for nationwide CPI.

On Tuesday, Bank of Japan Gov. Kazuo Ueda will speak to business leaders in Osaka, where many manufacturers are based. Ueda will respond to questions from the local executives and hold a press conference later in the day.

Japanese markets are closed Monday for a national holiday.

CHINA

China's central bank is likely to keep the borrowing cost of its medium-term lending facility steady on Wednesday after keeping the interest rate on the seven-day reverse repo--the country's main policy rate--steady so far this month.

Still, economists widely expect the PBOC to deliver further policy easing this year, including lowering reserve requirement ratios for banks to help boost liquidity in the economy.

The Federal Reserve's outsized rate cut has sparked hope that the Chinese central bank will follow suit, but concerns about narrow profit margins among commercial lenders and weak borrowing demand suggest limited room for more monetary policy easing, economists say.

Attention will also stay on any announcements related to lowering existing mortgage rates as Beijing looks to boost consumer confidence, though some economists doubt the measures will do much to bolster the housing sector.

Industrial profit data is due Friday. The numbers will give a hint at how industrial businesses are faring amid tepid domestic demand from Chinese households and corporations.

MALAYSIA

Malaysia will publish inflation figures for August on Monday, which are likely to show that price pressures in the country have remained steady.

Economists will be watching for signs that government subsidy cuts are having an impact on inflation, a potential risk that policymakers at the country's central bank have been keeping a close eye on.

Inflation has held steady so far since the government cut diesel subsidies earlier this year, and though analysts see scope for some second-round effects, other measures to keep prices in check could limit any spillover.

SINGAPORE

Singapore watchers will be looking for signs that price pressures in the city-state are in line with the central bank's expectations when inflation data for August is released Monday.

Focus will be on core inflation, a gauge watched closely by the Monetary Authority of Singapore that strips out private road transport and accommodation costs.

Recent prints suggest that consumer prices are stabilizing, but that inflation levels are still too high to indicate that the door to policy easing is open.

Economists say the MAS will likely want to see sustained evidence of cooling core inflation. At its last meeting, the central bank said it expects stronger economic growth and easing inflation this year.

--Any references to days are in local times.

- Additional reporting by Amanda Lee, Xiao Xiao, Kimberley Kao, Megumi Fujikawa, Ying Xian Wong, James Glynn, Renae Dyer, Emese Bartha, Miriam Mukuru, Paul Vieira and Dominic Chopping

Write to Jessica Fleetham at jessica.fleetham@wsj.com and Hoi Shan Chan at hoishan.chan@wsj.com

(END) Dow Jones Newswires

September 23, 2024 03:14 ET (07:14 GMT)

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