The spotlight in the Asia-Pacific region will be on Japan this week, where the release of key economic indicators will shed some light on the state of the world's third-largest economy. Meanwhile, a report on consumer prices could provide some insight into the future course of Australia's monetary policy, while central banks in Thailand and New Zealand are due to meet this week.
On Friday, Japan will release retail sales, household spending, industrial production and employment figures for the month of December, but focus will fall on the consumer price index (CPI) due at 0730 SIN/HK.
The nationwide core consumer price index (CPI) – which excludes volatile food prices – is expected to increase 2.6 percent in the month from a year ago. This compares to a 2.7 percent rise in the prior month and a 2.9 percent advance in October.
However, adjusted for an increase in the sales tax hike that took effect in April 2014, core consumer prices would have risen 0.6 percent on-year, well below the 2 percent target the Bank of Japan (BOJ) aims to achieve by April 2015.