Another key is the ramping up of consumer spending and service-related activity in China, thereby lessening the downside risks to growth associated with its multi-year structural adjustments affecting both the private sector and state-owned enterprises. Chinese policymakers recently cut bank reserve requirements again to bolster liquidity and credit demands.
Improving prospects internationally would go a long way towards stabilizing commodity prices, and help to alleviate the significant retrenchment underway among producers. China gave itself wiggle room in lowering its economic growth target this year, though it still set the pace at a relatively high 6.5% to 7%, suggesting the government prefers buoying the slowing economy to more painful retrenchment.
Tomorrow, from Australia, NAB Business Confidence figures will be released. Analysts are hoping for a better reading this month. Also, from China Trade Balance figures will be published. Surplus of 329 billion yuan is anticipated.
Figures to watch:
NAB Business Confidence (Tuesday 1:30)
China's Trade Balance (Tuesday)
