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Below the Quote on Coming Week Market Outlook from Alex Volkov, Market Analyst at VT Markets.

China kicks off the week on Monday, June 17th, with the release of its economic data at 10 am SGT. The reports on Fixed Asset Investment, Industrial Production, and Retail Sales will be under close scrutiny.

Recent data from China has painted a mixed picture, showing a stronger recovery in external demand but weak domestic consumption. Expectations are that Industrial Production will edge lower to 6.4% year-on-year from 6.7%. This slight decline may reflect potential issues in the supply chain or a dip in global demand.

On the other hand, Retail Sales are expected to improve to 3.0% from 2.3%, indicating a modest recovery in domestic consumption and a hint of improving consumer confidence. Fixed Asset Investment is anticipated to remain unchanged at 4.2%, suggesting that investment in infrastructure and other fixed assets is steady, possibly supported by government initiatives.

Traders will be looking for signs of stabilization to gauge the success of China’s accommodative policies. Lower-than-expected readings could signal the need for quicker policy support to meet the 5% growth target.

In April, Japan’s nominal wages grew by 2.1%, indicating a potential wage-price spiral. Headline and core inflation rates have eased to 2.5% and 2.2% respectively.

The market will look for signs of stable price growth around the 2% target. Persistent wage growth feeding into inflation could prompt further rate hikes from the Bank of Japan (BoJ), impacting currency and market dynamics.

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