A deluge of data from Japan that could give a clearer indication on how the world's third largest economy is coping with a consumption tax hike implemented in April, will top traders' watch list this week. Earnings are also in the spotlight, with a slew of corporate earnings due in Sydney and Hong Kong, along with economic data from the United States.
Japan's inflation, household spending and employment for the month of July are due for release at 0730 SIN/HK before Tokyo's market open on Friday. Retail sales and industrial output for July are due at 0750 SIN/HK on the same day.
Economists polled by Reuters forecast nationwide core consumer price index (CPI) rising 3.3 percent on-year, unchanged from June's reading. The core Tokyo CPI for July is seen advancing an annual 2.7 percent, a tick below the 2.8 percent in the previous month.
Household spending is expected to fall 3 percent from the year-ago period, the same as June's figure. On a month on month basis, it is expected to improve to 1.6 percent on-month in July from 1.5 percent in June. Retail sales are seen reversing from the contractions for the past two months, with Reuters economists polling a 0.1 percent annual rise in July.
Moody's Analytics expects the data to alleviate fears of how much of a drag the consumption tax, which was raised to 8 percent from 5 percent in a bid reduce the country's hefty debt pile, will have on the economy.
"Household expenditure fell modestly in June but this was still a substantial improvement from the sharp contractions in April and May. Real incomes are still falling but sentiment has risen since April. We should see a steady upturn in consumer demand in the third quarter," analysts wrote in a report.