Financial markets across Asia are bracing for a turbulent Friday, as investors hope to wrap up a month marked by wild swings on a high note.
But, with an economic calendar bursting at the seams, the ride might not be over just yet.
On Wall Street, Thursday saw a mixed bag of results.
Nvidia’s much-anticipated earnings triggered a dip in the Nasdaq, while stronger-than-expected U.S. GDP figures nudged the Dow to a new record.
However, the market moves were modest, leaving investors in Asia to chart their own course as they face a deluge of data.
Friday’s economic slate is packed, featuring second-quarter GDP from India, retail sales, and industrial production from South Korea, and private sector credit growth from Australia.
Thailand’s current account data and Hong Kong’s retail sales will also vie for attention. Meanwhile, Japan’s data avalanche includes retail sales, industrial output, unemployment, and crucially, Tokyo’s inflation figures for August.
On the corporate side, heavyweights like the Industrial and Commercial Bank of China, CITIC, and China Construction Bank are set to release earnings, potentially adding more twists to the market narrative.
As the month draws to a close, markets are reflecting the volatility that’s defined in August.
Japan’s Nikkei has dipped about 2%, while the MSCI Asia ex-Japan is up 1.5%.
Global stocks and the S&P 500 have gained over 1%, but China’s blue-chip index has slumped nearly 5%.
Currency movements are also in focus, with the dollar index down 2.6%—its weakest point this year—while the yen has jumped 3.7%, and China’s yuan has gained 1.5%.
In Japan, consumer price inflation in Tokyo is projected to hold steady at 2.2% in August, according to a Reuters poll, halting a three-month acceleration streak.
This could suggest that the Bank of Japan might not rush to raise rates again.
However, the same poll points to robust factory output and retail sales growth, reinforcing the resilience of Japan’s economy following stronger-than-expected GDP numbers earlier this month.
Across the Indian Ocean, India’s economic momentum appears to have slowed, with growth in the April-June quarter likely the slowest in a year, as per a Reuters poll.
The anticipated dip to 6.9% annual growth from 7.8% in the previous quarter highlights the impact of reduced government spending during a national election period.
As the data floodgates open, investors in Asia are left to navigate the final waves of a month that’s been anything but predictable.
For businesses, this economic turbulence serves as a reminder of the importance of agility and foresight in decision-making.
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