India election, China data in focus for Asia this week

What you need to know for the week ahead

Elections in India and Indonesia, alongside key economic data from China are likely to be the key events for Asia this week.

India's general election kicks off Monday and a parliamentary election in Indonesia is slated for Wednesday, while China is expected to release March trade data on Thursday and inflation data Friday.

Emerging markets are starting to regain favor following a violent sell-off last year amid jitters about an unwinding in U.S. monetary stimulus. Data from Thomson Reuters' Lipper service showed on Thursday that emerging market stock funds saw an inflow of $2.7 billion, the biggest since January last year.

An election in India, the world's biggest democracy, will take place over the course of a month to accommodate the country's 814.5 million eligible voters — a figure that exceeds the entire population of Europe.

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Political party advert in a newspaper.

Investors have been betting for a victory by business friendly opposition the Bharatiya Janata Party, with the benchmark Sensex up nearly 6 percent year-to-date, surpassing the S&P 500's 2 percent gain.

"[Opposition leader Narendra] Modi has had a foreign direct investment-inspired and relatively clean government-inspired success in Gujarat," Tony Nash, vice president of IHS told CNBC.

"Will he able to transition that to the national stage? I think based on his history, he's looking at investment in things like heavy industry, power and infrastructure, which I think will be really good for India," he added.

Friday sees the release of February industrial production data in India. Output hit a four-month high in January and February's manufacturing purchasing manager's index (PMI) rose at its strongest pace in a year.

Read MoreWorld's biggest election: Game changer for India?

Wednesday's parliamentary election in Indonesia meanwhile, is also likely to be watched closely ahead of a presidential election in July.

Last month, Jakarta's popular governor Joko Widodo became the front runner of the country's main opposition group, Indonesian Democratic Party of Struggle (PDI-P), and leads opinion polls for the presidential vote.

Bank Indonesia meets on Tuesday. A Reuters poll of 15 analysts expect the central bank to leave its benchmark rate unchanged at 7.5 percent amid signs of an improving economy. Last week, the country reported an unexpectedly large trade surplus of $790 million in February from a $440 million deficit in January.

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China data watch

China's March trade data is scheduled for Thursday and consumer price inflation (CPI) for March is out on Friday. The reports follow last week's mixed readings of February manufacturing data and fears over corporate debt defaults and credit concerns.

"Expect March trade data to show a bounce back in exports after their collapse in February, but softer growth in imports. The consumer price index is likely to have fallen in the month of March, but base effects are expected to see the annual inflation rate rise to 2.4 percent," said Shane Oliver, head of investment strategy and chief economist at AMP Capital.

Read More About 20% of China's economy is shrinking: Economist

On Wednesday, Beijing announced a fiscal stimulus package and while that reduced the possibility of monetary stimulus, analysts say any weak data in the future could still trigger looser monetary policy.

Elsewhere, both Japan and South Korea hold central bank policy meetings in the week with no major policy changes expected.