Asia week ahead: Going for accommodation - ING

The ING Bank Research Team note that Trade, inflation and policy rates dominate the calendar in Asia next week.

Key Quotes:

“Expect trade figures to tick up, though the overall story should remain rather sombre.

Central bank-wise, Philipines' inflation could provide some support for further cuts next year, while the Bank of Thailand is likely to act now.

Trade data from Malaysia, the Philippines, China and Taiwan are due, and each could tell a different story with respect to the trade war, the global tech slump, and domestic demand for imports.

Meanwhile, we are hoping for a bit more action from one of Asia’s other central banks.

One of the most reluctant to ease has been the Bank of Thailand (BoT), but given the currency's resilience in the face of measures aimed at weakening the currency, and the domestic economy’s continued stagnation, we are looking for a 25 basis point easing of policy rates to 1.25% at the coming meeting.

After easing a fourth consecutive time in October, Bank Indonesia will likely scrutinise forthcoming 3Q19 GDP data and current account balances to assess whether there is either the need for and room for further easing.”