Quotes from Scotiabank:- Asia will mostly take its cues from developments abroad particularly in Europe, but inflation figures in a number of markets including China will garner attention and likely in a dovish sense.- Chinese CPI is expect to hold firm at 1.4% y/y in December's print either late next week or the week after (the country often keeps its release schedules a mystery). One should probably put more weight on the forecasters in consensus who are expecting CPI to continue to slide lower. – Lower energy prices would counsel softer CPI, but Chinese inflation is a different animal compared to inflation in more developed economies. That's because China spends more of its consumer budgets – and hence weights in CPI – on more basic means of subsistence. Housing has a 17% weight in Chinese CPI, and food has about a one-third weight as measured by the so-called Engel coefficient. This one is therefore more complicated than a simple oil call.
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