Concerns about the Fed rate path and US equity market moves from Wednesday will likely set the tone for the Thursday (May 9) Asian session.
On Thursday (May 9), wage growth figures from Japan and the Bank of Japan Summary of Opinions will draw investor interest. Softer-than-expected wage growth numbers could reduce investor bets on a near-term Bank of Japan rate hike. Economists forecast average cash earnings to increase 1.5% year-on-year in March after rising 1.8% in February.
Nonetheless, the numbers may have less impact than usual. Wage negotiations ended in March, with sizeable wage hikes likely affecting the April stats.
However, the Bank of Japan Summary of Opinions could influence the Japanese Yen and the Nikkei.
Later in the Asian session, trade data from China will warrant investor attention. Improving trade terms could drive buyer demand for riskier assets. Economists predict exports to increase 1.0% year-on-year in April after falling 7.5% in March. Moreover, economists expect imports to advance 5.4% year-on-year after falling 1.9% in March.
Other stats include finalized Australian building permit figures. However, barring a marked revision to the preliminary building permit numbers, these will likely play second fiddle to the trade data.
