MNI Asia Pac Weekly Macro Wrap:

Download the Full Report here 

Executive Summary: 

JAPAN 

• Japan Q1 GDP growth was negative, with consumption flat and net exports a drag. The one bright spot was business spending. The data underscores the recent BoJ downside GDP forecast revisions and suggests little change in policy rates in the near term. 

AUSTRALIA 

• The April jobs data continue to show that Australia’s labour market remains tight with employment growth keeping up with the labour force over the last year and the unemployment rate remaining steady at 4.1%, only marginally higher than November’s recent low. However, there are some early signs that workers would like more hours.
• Q1 WPI printed higher than expected up 0.9% q/q & 3.4% y/y due to stronger public sector agreements. Wage data are unlikely to derail a May 20 rate cut but will probably keep the RBA cautious. 

NEW ZEALAND

• New Zealand April card spending was -0.2m/m for total, after a revised -1.6% fall in March (originally reported as -1.5%). For retail card spending we flat in April, after a -0.8%m/m fall in March. The trend around m/m spending momentum has been mostly negative since the start of the year. Q2 inflation expectations rose above the mid-point of the RBNZ target band. 

SHORT TERM RATES 

• Interest rate expectations across dollar-bloc economies have firmed through December 2025 over the past week - with the exception of Canada.

SOUTH KOREA 

• Early May trade trends were weaker, pointing to tariff impact. The won rallied on reports that US-South Korea have discussed FX policy recently.   

ASIA 

• Thailand consumer confidence implies a softer consumption backdrop, while India inflation came in slightly below market expectations. Singapore exports beat estimates in April. 

ASIA EQUITY FLOWS 

• Equity flows have been very strong throughout the week led by Taiwan as flows over the last five trading days reach USD$4.5bn