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A glance at the upcoming day in Asian markets reveals investors still riding high on recent stimulus moves by the U.S. Federal Reserve and China. China’s latest action involves instructing banks to lower mortgage rates for existing home loans by the end of October. This follows a significant stimulus package implemented last week, resulting in a surge in stock market activity. However, Japanese markets may face volatility as Shigeru Ishiba is set to become the new prime minister. Ishiba, a critic of past monetary easing, acknowledges the need for accommodative policies to support economic recovery. The yen saw a sharp increase on Friday, signaling potential market shifts on Monday. As the quarter comes to a close and China’s Golden Week holiday approaches, market optimism may be tempered.

Key economic indicators on Monday include China’s PMI data, Japan’s retail sales and industrial production figures, Taiwan’s GDP, and South Korea’s retail sales and industrial production. China’s economic situation may pose challenges, with factory activity expected to have declined for the fifth consecutive month in September. Although Beijing’s stimulus efforts will take time to impact actual economic data, the market remains optimistic. Despite some sobering numbers, last week saw significant gains in Shanghai’s equity index and Hong Kong’s benchmark, indicating a wave of positivity.

Upcoming developments to watch include China’s PMI data, Taiwan’s GDP from Q2, and Japan’s retail sales and industrial production figures for August.

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