On Tuesday, Bank of Japan Governor Kazuo Ueda stated that the economy is showing signs of moderate recovery, however, some weaknesses are also evident according to recent data. 

“We are focusing on whether a positive wage-inflation cycle is kicking off, in judging whether sustainable, stable achievement of our price target is coming into sight,”

In an earlier news conference, Finance Minister Shunichi Suzuki stated that Japan hasn’t reached a stage where it can confirm that it has defeated deflation despite favorable developments like high wages and record levels of capital spending by companies. 

Addressing the reporters, the Finance Minister acknowledged statements by the Bank of Japan Deputy Governor Shinichi Uchida, affirming BOJ’s intention to maintain accommodative monetary policies even after it ends its negative interest rate policy. 

Meanwhile, global markets gradually retreat from the recent peaks ahead of US inflation data on Tuesday. In this case, Asian markets are expected to remain stable, with limited swings in either direction. 

Indian inflation data and the release of Bank of Korea meeting minutes lead the regional economic calendar. In addition, the said event also includes updates on Philippine trade, Malaysian industrial production figures, and Australian business confidence. 

Asian stock indexes are mostly bullish in early trading sessions today, with the Hang Seng index 1.7% higher at 16,870.21, and Shenzhen showing a 0.05% increase at 9,586.75. The Kospi index also went up by 0.38%, at 2,670.26.

Nikkei, on the other hand, is 0.58% lower at 38,614, while the Shanghai index experienced a slight decline of 0.47% at 3,054.12.