Asian markets are poised for a period of choppy price action as investors await definitive catalysts. Attention is particularly focused on the real estate sector and official financial updates from China, following statements during the previous US trading session indicating China’s commitment to stabilising the housing market. Furthermore, the People’s Bank of China (PBoC) conducted a meeting in February, emphasising the strategic use of monetary tools, though specifics were not disclosed. Anticipation is building for additional fiscal and financial measures, especially after Chinese authorities took decisive steps to mitigate short-selling and stabilise stock market fluctuations.
In the near term, market participants are keenly awaiting a slew of critical economic indicators, including the Australian Consumer Price Index, Japanese Retail Sales, and the second revision of the US GDP for the last quarter. Preliminary data on US PCE prices for the same period will also be under scrutiny. It’s important to highlight that as the month draws to a close, there could be an uptick in interest towards Asian-Pacific equities and other risk assets, driven by month-end trading dynamics favouring emerging market assets. Furthermore, a potential weakening of the US Dollar, particularly against commodities-linked currencies like the Canadian and Australian Dollars, might be observed due to their sensitivity to market shifts and positioning in commodity markets.
