Asia will be in focus this week, as investors await a series of fresh economic data.
On Wednesday Japan will report on its first-quarter gross domestic product (GDP), which is expected to indicate the world's third largest economy on a steady recovery from recession after last year's sales tax hike.
According to a Reuters poll of 22 economists, the economy supposedly grew 1.5 percent over the January-March period, This would match the rate of growth in the preceding quarter, and be equivalent to 0.4 percent, same as the October-December quarter, as exports and business investments improve.
Moody's Analytics said in a note, "The economy is growing steadily on the back of exports and industrial production, which are benefiting from the cheaper yen
and increased demand for new tech gadgets. However, private
consumption stagnated due to a lack of wage growth and inflation erodes
households' purchasing power. The swing variable will be investment,
though on balance, it looks weak."
March machinery orders released Monday rose 2.9 percent on year, rebounding from a 0.4 percent slip in February.
The Bank of Japan (BOJ) is expected to keep its expansionary monetary strategy following its two-day meeting on Friday. Last month, the central bank kept policy steady, but trimmed its estimate for economic growth and inflation in its outlook statement.
Governor Haruhiko Kuroda maintained his positive view on inflation noting he did not see any urgent need for further monetary easing. Not all economists are inclined to agree with this confident outlook.
"We will see more stimulus from the BOJ. Without meaning to insult Mr. Kuroda, his public speeches are usually much more upbeat than what the BOJ usually ends up doing," said Michael Every, head of financial markets research for Asia-Pacific at Rabobank.
