Investors also will keep the U.S. debt-ceiling talks in focus.
Looking further into the week, the main regional drivers for Asian markets are likely to be policy decisions in
, South Korea and Indonesia, inflation figures from Singapore and Malaysia, and Japanese unemployment and retail sales figures.economic engagement with China. Neither are they turning inward, and nor do they want to hamper China's economic development, they said. But Chinese markets have weakened sharply in recent weeks as economic indicators have fallen off a cliff, against the backdrop of major world powers appearing to reconsider their long-termThe Chinese yuan has fallen through the 7.00 per dollar barrier but is unlikely to get any immediate policy support, as the PBOC is expected to leave one-year and five-year loan prime rates unchanged on Monday at 3.65% and 4.30%, respectively.
If anything, the weak economy and evaporating inflation could steer the PBOC towards easing policy in the coming months.
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