Chinese trade has experienced a rebound, driven by strong demand for electronics and increased exports to Russia. This resurgence in trade activity reflects a positive trend in China's economic recovery.
Inflation pressures are cooling globally, leading to a decline in bond yields, interest rate expectations, and oil prices. Concerns over the US economic outlook, particularly the softening labor market, are driving this trend. The Asian market may not see a boost in investor sentiment or a rally in risk assets like emerging market stocks. Key indicators to watch in the Asia Pacific region include Thailand's inflation numbers, Chinese and Australian trade figures, and FX reserves figures from Asian countries. The outlook for Chinese trade is not optimistic due to slowing growth and weak global demand. Changes in FX reserves holdings, particularly in US Treasuries, may pose a headwind for the dollar.