Asia Pacific markets are set to finish the week on a high following strong leads from European and US investors. Industrial commodities rose, led by oil, and overnight trading displayed “risk on” characteristics despite the lack of an obvious trigger. Important data from China may change the course of the trading day.
Retail sales and industrial production numbers speak directly to the outlook for the economy in China. Forecasts centre on a steady state, both reads expected to print in line with the previous data at 10.5% and 6.2% respectively. Any divergence will hang over the session. IN keeping with a command economy, and the global reporting season trends, investors may look for a slightly better than predicted outcome.
The Australian reporting season takes breather today, with a single report in the top 200 companies. James Hardie delivered a quarterly increase in profit of 5%, but investors may be concerned about margin compression as sales were up 12%.