After a slump in global stocks last week, data from Japan and China will likely top traders' watchlist this week as they seek more cues on the state of the global economy. Beyond Asia, investors will watch the Federal Reserve's policy meeting for any indication when it will begin to raise interest rates.
Japan data lineup
Over the weekend, Prime Minister Shinzo Abe won his snap election and his ruling Liberal Democratic Party (LDP) and coalition partner maintained a supermajority, according to media exit polls. Abe's decision to call for a snap election two years early is seen as a referendum not only on his decision to delay a sales tax increase but on Abenomics as a whole.
On Monday, the Bank of Japan's Tankan survey of the corporate sector showed sentiment among Japan's big manufacturers worsened in the fourth quarter, underscoring pessimism about the Japanese economy.
Trade data is scheduled for release on Wednesday at 0750 SIN/HK. A Reuters poll of 26 economists forecast exports to increase 7.0 percent in the year to November, with a 1.7 percent annual rise in imports.
The Bank of Japan will also have its monthly policy meeting this week and action around this meeting will "not be too big a surprise given the central bank's indirect role in Abenomics", noted IG market strategist Stan Shamu.