Jamie McGeever, a look at the day ahead in Asian markets, gave Reuters - A look at the day ahead.
Another day was another surge in U.S. bonds yields, and another sell-off on global markets. Asian markets were waken up on Friday to a raft of key economic indicators that could confirm the extent of China's slowdown.
The August readings for house prices, urban investment, industrial production, retail sales and unemployment will paint a clear picture of where the Chinese economy is right now. It is not a pretty picture.
Any hopes of a rebound in the second half of the year have been sabotaged by renewed COVID 19 lockdowns and the deepening property sector slump. Trade growth has slowed, while the offshore currency fell to a new two-year low on Thursday through the 7.00 dollar barrier.
As part of a global downgrade, economists at Barclays cut their 2022 Chinese GDP growth forecast to 2.6% from 3.1% - its lowest annual growth outcome in many decades - and cut the outlook for next year to 4.5% from 5.3%.
Some economists believe that there will be sub 2% growth this year.
The dollar has gone up 10% in the last five months and 5% in the last two big moves for the tightly managed yuan.
Given the seemingly unstoppable rise in the two-year U.S. bond yield, it will be hard to stop the dollar, something that the BOJ will be aware of as the yen falls towards 145.00 South Korean unemployment data and RBA governor Phillip Lowe's parliamentary testimony could give their respective currencies direction on Friday.
Key developments that should give more direction to markets on Friday: