Local market awaits slew of data, earnings reports

FRESH off the Good Friday holiday, the Singapore market returns to trading with a slew of economic data releases and key Straits Times Index (STI) constituents reporting their earnings on the horizon.

While most international markets were closed on Friday, it was business as usual for Japan and China. Despite trading lacking direction and liquidity being low, their markets managed to register gains.

In Japan, the benchmark Nikkei 225 index added 0.5 per cent, or 110.44 points, to 22,200.56, while the broader Topix index climbed 0.12 per cent, or 1.96 points, to 1,616.93.

In China, the benchmark Shanghai Composite Index gained 0.63 per cent, or 20.60 points, to close at 3,270.80, and the Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.94 per cent, or 16.52 points, to end the day at 1,778.81.

The Hong Kong, Australia and New Zealand markets remain closed on Monday for the Easter holiday but will resume trading on Tuesday.

On the Singapore economic docket, Consumer Price Index (CPI) inflation figures for March will be released on Tuesday as will industrial production numbers on Friday.

FXTM research analyst Lukman Otunuga said that traders will look to March inflation and industrial production data for clues on how the city-state's economy is faring against external headwinds.

"Should the upcoming data releases offer signs that the domestic economy remains resilient, even though headline gross domestic product (GDP) eased in the first quarter, that may help keep

USD/SGD stable around the 1.355 handle, as it has so far in April," he added.

First-quarter unemployment rate and the final print for Urban Redevelopment Authority's private home prices are also due on Friday.

With a number of real estate investment trusts reporting their earnings in the past week, the Singapore earnings season gears up with six STI components reporting their earnings for the first three months of the calendar year this week.

On Wednesday, CapitaLand Mall Trust will post first-quarter earnings. Thursday will see Venture Corporation and Friday, Hutchison Port Holdings Trust's results.

Meanwhile, Thursday is the day for the release of SGX's Q3 earnings. Yangzijiang Shipbuilding and Jardine Cycle & Carriage are likely to release their Q1 results on Friday.

CMC Market's analyst Margaret Yang noted that investors were trading cautiously towards the end of last week, in the lead up to the heavy earnings release this week.

Key data releases in Asia include South Korea's Q1 GDP on Thursday as well as Saturday's March industrial profit in China.

Mr Otunuga commented that Saturday's data release in China will be keenly watched "to ascertain whether the data will commensurate with the robust Q1 GDP print of 6.4 per cent".

"Markets would want further proof that the world's second largest economy is stabilising, before pushing further out into risk-on territory."

Among central banks in the region, the Bank of Japan and Bank Indonesia have monetary policy decisions to make on Thursday and Friday, respectively.

One for traders to note is the 10-day holiday for the Japan market (April 27 to May 6). This includes Showa Day next Monday and two national holidays, among others.

UOB economist Alvin Liew said: "This unusually long holiday for Japan has caused worries among the trading community and regulators about the potential for cash shortages, market volatility or even episodes of 'flash crash' like the one that happened on Jan 3 during Japan's extended new year holiday."

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