Aurelia Butler

(Reuters) – A look at the day ahead in Asian markets.A wave of economic data from the Asia & Pacific region hits local markets on Monday, as investors get their first chance to react to the sizzling U.S. employment numbers from Friday and digest the latest deterioration in sentiment towards China.Monday’s economic calendar includes purchasing managers index figures from several countries including China and Japan, Indonesian GDP, Thai inflation and Australian trade. If Asian markets take their cue from Wall Street, expect a burst higher. There was nothing in the January jobs report that suggests the U.S. economy’s momentum is fading. Quite the opposite. With the tailwinds of bumper tech earnings also behind them, the S&P 500 roared to a new all-time high and the Nasdaq jumped to a fresh two-year peak. Remarkably, that is the S&P 500’s 13th weekly gain out of the last 14. Music to Asian bulls’ ears, right? Yes, but there are grounds for caution – the dollar bounced back, U.S. bond yields are soaring, and concern over China’s economy and markets is back at the forefront of investors’ minds.China’s CSI 300 index of blue chip shares fell on Friday, bringing its losses for the week to 4.6%. That’s the biggest weekly decline since October 2022, and comes as the index fell six months in a row for the first time ever. The IMF last week warned that China’s growth could slow to 3.5% by 2028, and the United States added more than a dozen Chinese companies to those it alleges are working with Beijing’s military, as part of a broader effort to keep American technology from aiding China.Meanwhile, Republican presidential candidate Donald Trump has said he would impose tariffs on China again if he is elected in November and they could exceed 60%.That said, the poor price action, newsflow and sentiment are drawing some investors in. Bank of America and EPFR data show cumulative inflows into Chinese stocks have hit a new record, and Goldman Sachs says hedge funds have been buying at the fastest pace in five years.Elsewhere on Monday, Indonesia releases fourth-quarter GDP figures. Investors expect year-on-year growth of 5.0%, supported by resilient domestic consumption, but quarter-on-quarter growth of just 0.4%. Figures from Bangkok are expected to show annual headline inflation in Thailand remains stuck just under 0.6%, and core prices again shrinking by around 0.8%. The government has raised pressure on the Bank of Thailand to cut its policy rate, currently at a decade-high of 2.50%, at its Feb. 7 meeting. But the central bank has pushed back, and governor Sethaput Suthiwartnarueput told Reuters last week that the current rate was ‘broadly neutral’.Here are key developments that could provide more direction to markets on Monday: – China Caixin services PMI (January)- Indonesia GDP (Q4)- Australia trade (December) (By Jamie McGeever; Editing by Diane Craft) More

Karahan replaced Hafize Gaye Erkan on Saturday, hours after she resigned saying she needed to protect her family amid a “reputation assassination”.In his first remarks after his appointment, Karahan said the priority was price stability, and that he would continue efforts to ensure disinflation, relying on a strong team.”We will be watchful of inflation expectations and pricing behaviour. We stand ready to act in case of any deterioration in the inflation outlook,” Karahan said in a written statement.Karahan, 42, has a University of Pennsylvania economics PhD and worked as an economist at the Federal Reserve Bank of New York for almost a decade, according to his biography.He also taught as an adjunct professor at Columbia University and New York University and worked for Amazon (NASDAQ:AMZN) as a principal economist in 2022.Finance Minister Mehmet Simsek said on Sunday that he was looking forward to working with the new governor and his team in implementing his government’s economic program. “Governor Karahan is an excellent fit. With extensive experience, most of which was with the Federal Reserve Bank of New York, I have no doubt he will excel in this new role,” Simsek said on social media platform X.”We are committed to supporting the disinflation process through restoring fiscal discipline, while also implementing structural reforms,” he added.Before being appointed to his new position on Saturday, Karahan was a deputy governor and a member of the bank’s monetary policy committee since July last year.Appointing one of the deputy governors to head the bank supports the Turkish finance ministry’s assertion that the current central bank strategy is fully supported by President Tayyip Erdogan, Goldman Sachs said in a note to clients.”We therefore view the appointment as positive as it should allay any concerns over a near-term loss of political support for the Bank,” it said.The new governor’s first public appearance will be in Ankara on Thursday when he will hold a briefing on the first inflation report of the year, the central bank said in a statement. More

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