The second day of easing restrictions after a COVID 19 lockdown in Melbourne was lifted.
Jamie McGeever looks at the day ahead in Asian markets, Reuters -- A look at the day ahead.
The global inflation focus will focus on Australia's November figures on Wednesday, and will shine a light on whether the previous month's surprise slowdown was a one-off or not.
Inflation was unexpectedly slowed to 6.9% in October from a multi-year high of 7.3%, which is where analysts expect it to return to. Asian markets could open on Wednesday with an added spring in their step, according to another downside surprise.
The scope of inflation data this week is broad. Australia's numbers, punchy Tokyo data released on Tuesday and China and India's December data on Thursday are regionally highlights, while the U.S. December report on Thursday is the highlight.
The U.S. and other central bankers insist that they can't give up on the fight against rising prices despite growing evidence that inflation has peaked. According to the Bank of England's Huw Pill, who warned against complacency, said on Monday that inflation pressures risked becoming permanent due to tight labor markets.
Consumer prices in Japan's capital, a leading indicator of nationwide trends, rose 4.0% in December from a year earlier, a fastest pace in over 40 years and more than the central bank's 2% target for a seventh month.
Money market pricing points to the Reserve Bank of Australia's cash rate rising to just under 4% by September. On Monday, the Aussie dollar hit a four month high of $0.6950 and was unsurprisingly easing back on Tuesday ahead of inflation figures.
Risk appetite should be strong in early Asian trade after the three main Wall Street indexes rose between 0.5% and 1.0% on Tuesday.
World and Asia ex-Japan stocks are up 3% and 5.7% this year, and China's Shanghai Composite index is up 3.8%.
Investors have praised China's relaxed COVID 19 policies, but the optimism may be tempered by the issuance of short-term visas in South Korea and Japan in response to the reversal of countries that required negative COVID 19 tests from Chinese travelers.
Three key developments that could give more direction to markets on Wednesday are: