Jamie McGeever has looked at the day ahead in Asian markets, Reuters -- A look at the day ahead.
Economic data from Asia's two economic powerhouses kicks off the global trading day on Monday - a series of July indicators from misfiring China and Japan's Q 2 GDP report.
Economists are looking for a recovery, albeit gradual.
The five-week losing streak on Friday slowed to close the week up 0.8%, lifted by the feel-good factor on Wall Street and the easing of Sino-U. Five U.S. listed Chinese state-owned companies with audits are being investigated by the U.S. securities regulators on Friday, but they said they would voluntarily delist from the New York Stock Exchange.
Japan's economy is expected to bounce back strongly in the second quarter after contracting in the first, with economists forecasting quarterly growth of 0.6% and annualized expansion of 2.5%.
Japan's yen was up around 1% against the dollar last week, its third weekly rise in four. Could it break through the 130 per-dollar barrier this week?
The growing hope that the U.S. inflation has peaked will set the tone across Asia on Monday. This could further fuel the rally in risk assets, steepen the U.S. yield curve and weigh on the dollar.
The U.S. Treasury releases its TIC data for June, which measures flows in and out of U.S. debt. China's demand will be closely watched as a result of the recent political strains.
Key developments that should give market direction should be made on Monday: