While most eyes will be focused on the G7 meeting taking place in the Balkans Monday, some investors are watching Asia's two largest economies, Japan and China, both of which are scheduled to release much data over the course of the coming week.
Japan’s economy grew rapidly in the first quarter, with its GDP expanding an annualized 3.9 percent, surpassing the estimated 2.4 percent and showing a strong pickup in business investment and inventory buildup. Inventories added 0.6 percentage point to growth, more than an initial estimate of 0.5 points.
The country's current account balance posted its tenth straight month of surplus in April at 1.3 trillion yen ($10.5 billion), somewhat lower than predicated.
“Japan is in on a trajectory for a recovery,” said Taro Saito, an economist at NLI Research Institute. “The Bank of Japan must be relieved with today’s report, as it signals there’s no need for them to do more now.”
The yen was little changed at 125.58 per dollar at 10:00 a.m. in Tokyo while the Topix share index declined 0.1 percent.
China
Economic indicators from China will also be released this week, including its trade balance on Monday, inflation on Tuesday, retail sales, industrial production, and fixed asset investment on Thursday. Trade figures are expected to show exports falling 5 percent and imports plunging 10.7 percent for the year.
"A very big week for Chinese data which will provide further guidance on the pace of economic activity," a representative from National Australia Bank (NAB) indicated.