Asian Markets Steady Amid Key U.S. and Chinese Data Awaited

Asian markets started the week quietly due to a holiday in Japan, with investors awaiting key U.S. and Chinese economic data. U.S. consumer prices and retail sales are crucial for Federal Reserve decisions, while China's economic data will highlight underperformance and potentially call for more stimulus. Global currency and commodity markets also saw slight movements.

Asian markets kicked off the week on a quiet note due to a holiday in Japan, giving investors a brief respite from recent volatility. Market participants are bracing for significant economic data from the U.S. and China, which are expected to shed light on global growth prospects.

Key data for the Federal Reserve this week include U.S. consumer prices, expected to rise 0.2% month-over-month, reinforcing ongoing disinflation and potentially leading to a rate cut in September. However, persistent core inflation could curb the size of any cut. Robust retail sales data should reflect consumer resilience.

The futures market continues to expect a nearly 50% chance of a 50 basis points rate cut by the Fed in September. Meanwhile, U.S. retail giants Walmart and Home Depot will reveal their earnings, offering insights into consumer health.

China is set to release data on retail sales and industrial production, most likely confirming the need for additional economic stimulus. Global markets saw the dollar strengthen, modest gains in oil prices, and gold stabilizing. Geopolitical concerns also buoyed oil prices amid tensions between Iran and Israel.

(With inputs from agencies.)