Asian markets this week will be closely watching a range of economic indicators and central bank actions.

From Singapore's cooling inflation and New Zealand's retail recovery, attention turns to potential rate cuts in South Korea and Thailand's policy stance.

Japan's end-of-month data deluge and India's gross domestic product will offer a glimpse into the region's largest economies.

China's PMI and South Korea's trade figures will round out the week, providing critical insights into regional growth and trade dynamics.

MONDAY, Feb. 24

Singapore's annual inflation rate cooled to 1.2% in January from 1.5% the previous month, well below consensus estimates of 2.2%. This marked the lowest print since February 2021.

The easing prices of food, housing and utilities, healthcare, education, and miscellaneous items drove the moderation in the city-state's consumer price index. Additionally, recreation costs fell.

Government data showed that the core inflation rate moderated to 0.8% from 1.7%.

Meanwhile, retail sales in New Zealand rebounded in the last three months of 2024 with a 0.2% growth, a turnaround from a 2.5% decline in the prior quarter.

TUESDAY, Feb. 25

The Bank of Korea (BoK) will likely reduce borrowing costs on Tuesday as political risks and slowing economic growth reinforce the case for interest rate cuts.

Analysts foresee a 25 basis point reduction, lowering the policy rate from 3.00% to 2.75%, to prop up the sluggish economy.

The country's political landscape has been unstable following the impeachment and arrest of President Yoon Suk-Yeol in December 2024. As a result of the turmoil, consumer and business confidence plummeted, casting a shadow over economic prospects.

In a surprise move, the BoK decided to hold the interest rate at 3.00% in January to strengthen the won, which had been weakened by political uncertainties.

Meanwhile, Taiwan will release its industrial production and retail sales figures.

"Since most of the Lunar New Year fell in January this year, we expect Taiwan's industrial production will slow significantly from 20% year on year to around 1.7% YoY. Things should rebound in February," ING Bank said in a note.

Trade numbers from Hong Kong and Thailand are also due on Tuesday.

WEDNESDAY, Feb. 26

A Reuters poll of economists predicts the Bank of Thailand will hold its key interest rate steady at 2.25% on Wednesday and implement only one rate cut this year, aiming to preserve a policy buffer amid rising global uncertainties.

"The Q4 (GDP) print was the highest in many quarters...and inflation has gone back into the 1-3% target range. I don't see any reason for the Bank of Thailand, at this stage, to consider another cut," Miguel Chanco, chief emerging Asia economist at Pantheon Macroeconomics, was quoted by Reuters as saying.

Singapore's industrial production data and Australia's monthly CPI indicator will also be released midweek, alongside Hong Kong and Taiwan's final Q4 GDP figures.

THURSDAY, Feb. 27

Malaysia's producer prices will be available on Thursday, as will Taiwan consumer confidence data.

FRIDAY, Feb. 28

Japan's Usual End-of-Month Data Deluge

Inflation: A Reuters poll of economists suggests that Tokyo's core consumer price index rose 2.3% YoY in February, easing from 2.5% in January. Lower electricity and gas prices drove the moderation due to the resumption of government support.

Activity: According to a Reuters survey, Japan's industrial output is forecast to fall 1.2% month-on-month in January. On the other hand, retail sales are expected to have increased, rising 4% YoY, supported by robust auto sales.

Meanwhile, India's economic growth is expected to have accelerated in the October to December period, following a 5.4% expansion in the September quarter.

The State Bank of India predicts a Q3FY25 GDP growth rate of 6.2% to 6.3%.

If there are no significant revisions in the earlier estimates for Q1 and Q2, the full-year GDP growth for FY25 is expected to be 6.3%, SBI stated.

Other key indicators due Friday are the Philippines' trade numbers, Singapore's export prices, and Thailand's retail sales.

SATURDAY, March 1

China, the biggest economy in Asia, will release its latest PMI data.

The NBS Manufacturing PMI market consensus is 50.0 for February, compared to 49.1 in January, indicating that the Chinese manufacturing sector has emerged from contraction.

Additionally, South Korea will publish trade data. This will provide insights into the country's export and import performance and overall trade balance.

"We think exports will rebound after contracting in January amid Lunar New Year-related noise in trade figures. We believe semiconductors and cars will lead gains," ING Bank said in a note.