Investing.com - As the new quarter begins, there's a wave of optimism sweeping across Asia. This comes on the back of robust U.S economic data and an increasing faith that risk-oriented assets can endure globally rising interest rates over extended periods.
This outlook could be a potential game-changer for Asia, provided it remains consistent. Excluding Japan, Asian stocks have lagged significantly in this year’s first half with Chinese equities witnessing a decline.
The global stock market saw nearly a 13% rise while Japan's Nikkei 225 soared by as much as 27%, hitting record highs last seen about three decades ago. In contrast, MSCI's index for Asia excluding Japan showed only modest growth at around 1.65% when calculated in US dollars; blue-chip Chinese stocks experienced a slight dip of 0.8%.
Trading volumes might be subdued due to the American Independence Day holiday on Monday but Wall Street's rally from last Friday is expected to encourage investors' appetite for riskier ventures.
Manufacturing PMIs
A series of Purchasing Managers Index (PMI) reports set to release on Monday will offer insights into the service sector and factory activities during June across countries like China, Indonesia, South Korea and Australia.
Inflation Figures Ahead
Consumer price index data from various Asian nations including South Korea, Indonesia and Thailand will provide perspective into how inflation has varied throughout these regions in the previous month.
Investors are keenly awaiting signs indicating any foreign exchange intervention by China may attempt to slow down yuan depreciation after its economy performed below expectations post lifting COVID-19 restrictions thereby placing immense downward pressure on its bonds currency and stocks.