China Market Seen Idling Ahead of Raft of Economic Data
The Chinese market may see more narrow range trading ahead of June economic data slated for release next week.
The Shanghai Composite Index edged up 0.03 percent to 2226.11 on Monday.
The People's Bank of China issued its "2012 financial stability" report and promised to deepen reforms on interest rates and currency rates. It may be taken by investors to mean there will be more liberalization of interest rates and lead to lower interest margins for banks.
Stocks to Watch:
Airline Stocks - Airlines may cut fuel levy surcharges by 20 yuan to 30 yuan ($3.15 to $4.73), or 23 percent to 28 percent, beginning July 5, according to state media. It would be the second surcharge cut this year. Meanwhile, the state planning agency is expected to announce cuts to jet fuel prices in the next few days.
Auto Stocks - Transport officials in the southern city of Shenzhen said they have no plans to impose car purchase restrictions to ease congestion and reduce pollution. Residents have speculated that Shenzhen may be next to set limits on car registrations after nearby city of Guangzhou announced the curbs over the weekend.
Xichang Electric Power - The hydropower producer expects to have made a loss of 25 million yuan ($3.9 million) in the first six months of the year on lower investment income and declining output due to dry weather.
Coming Up This Week:
TUESDAY: Singaporean PMI, Chinese HSB Services PMI, Australian Retail Sales
WEDNESDAY: Indian HSBC Services PMI, Australian Trade Balance
THURSDAY: Australian AIG Construction Index
FRIDAY: Japanese Leading Index
—By Cheng Lei, CNBC Asia Pacific