Economic and Financial Market Highlights
Incoming data confirm that the regional recovery continues. On the policy front, Malaysia raised interest rates, which took some market participants by surprise. Australia also hiked rates for a fourth time, as widely expected. Meanwhile in China, the annual People’s National Congress commenced, with a series of policy announcements and targets for 2010. Equity and currency markets rose for the week on the back of continuing strong economic indicators and receding fears of sovereign debt crises in Europe. In the coming week monetary policy meetings will take place in Korea (markets expect no change, although rate hikes may begin soon given the strength of the recovery). Central banks in Thailand and the Philippines will also have policy meetings. Finally, China will release a battery of data, including exports, inflation, new loans, industrial production, fixed investment, and retail sales.
