Markets Overview

Geopolitical tensions are likely to stay in focus this weekdespite North Korea’s failed missile launch on Sunday asPresident Trump is said to be considering “kinetic” militaryaction, including a sudden strike, in reaction to North Korea’sprovocative actions as reported by Bloomberg. This is likelyto continue to weigh on risk sentiments. In early Asia tradetoday, USD/JPY dropped another 0.3% to 108.35.

    Markets is likely to be more muted today as most key centersin Europe including London, Switzerland and Germany areclosed for Easter Monday, together with Australia and NewZealand.

    A heavy lineup of data releases is in store for Asia this week.

    These include: Singapore’s Mar trade data and China’s slewof releases including 1Q17 GDP report on Mon. On centralbank front, Bank Indonesia rate decision is due on Thur. Fora view of the strength in external demand, exports ordersdata from Taiwan are out on Thur and South Korea will bereporting on Fri morning trade data for first 20 days of Apr.

    CPI reports are also due from Malaysia (Thur) and HK (Fri).

    For today (Mon 17 Apr), at 830am Singapore’s key non-oildomestic exports (NODX) for Mar are seen rising 6.4%y/y, down from 21.5% in Feb, while electronics exports areseen holding at 12.1%y/y vs. 17% in Feb. Later at 10am,China will report its Mar retail sales, fixed asset investment,and industrial production data along with 1Q17 GDP whichis seen rising 6.8%y/y, similar pace as in 4Q16. The reportshould hold no surprise as China’s economic growth upsideis dampened by central bank’s gradual tightening stance,while the ongoing shift towards services sector and rise inprivate consumption and spending is providing much growthsupport.

    Hong Kong market is closed for public holiday.