Marketmind: Riding the Friday positivity wave.

Asian Markets Set for Positive Start After Strong U.S. Jobs Data

Get ready for a positive start to the week in Asian markets! Friday’s strong U.S. jobs data has soothed recession and banking sector fears, and sparked the best day for world equities in five months.

Monday’s market tone will probably be set by the U.S. feel-good factor, boosted by surprisingly strong corporate earnings, and whether investors think the U.S. really will defy the odds and head for a soft landing. Federal Reserve Chair Jerome Powell is very optimistic, saying “It’s possible that this time is really different. The case of avoiding a recession is, in my view, more likely than having a recession.”

What to Watch For

• Final reading of Japanese purchasing managers index
• Taiwanese trade for April
• Two reports on U.S. credit conditions and loan demand
• Chinese economic indicators: trade, lending and money supply figures for April, and CPI inflation
• Technology giant JD.com and China’s largest chip foundry Semiconductor Manufacturing International Corp both release first-quarter earnings
• G7 finance ministers meeting in Niigata, Japan
• Bank of Japan minutes of its April 27-28 policy meeting
• Bank of England’s policy meeting

Keep an eye on these key developments that could provide more direction to markets on Monday:

• Japan services, composite PMI (April, final)
• Australia business conditions index (April)
• Taiwan trade (April)

Later in the week, investors will be looking for a clearer insight into how well China’s economy is doing after abandoning its COVID-19 lockdown restrictions. Reports on trade, lending, money supply figures, and CPI inflation will give us a better idea. Economic momentum is clearly slowing, so it will be interesting to see how the market reacts.

Overall, it’s shaping up to be an exciting week in Asian markets!

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