Marketmind: China inflation could spoil the weekend party
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A look at the day ahead in Asian markets from Jamie McGeever.
A big dollar fall, historically low volatility, lower bond yields, and Wall Street on the march with the S&P 500 joining the Nasdaq in bull market territory - Thursday's global market moves augur well for a strong end to the week in Asia on Friday.
Any optimism could be punctured, however, by inflation data from China. If they are in line with other indicators lately that show Asia's biggest economy is sputtering, China's stocks, bonds and currency may come under renewed heavy pressure.
Consumer prices are expected to decline 0.1 per cent in May and rise 0.3 per cent year on year. April's CPI report showed inflation virtually evaporated, highlighting Beijing's challenge to stimulate enough economic activity and growth to kill the threat of deflation.
