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Asia Week Ahead: U.S. Interest Rate Decision, Japan's Data Deluge, Industrial Output

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Several key data releases are scheduled this week, with a decision by the U.S. Federal Reserve on Wednesday regarding interest rates taking center stage.

The economic release calendar will gain momentum as the week progresses.

Following business and consumer confidence survey reports, industrial and production data, and import and export prices, the bulk of economic disclosures will be released Friday.

Japan is set to announce an interest rate decision at the end of the week. The week ahead also features the usual end-of-month data deluge from Japan that could provide insights into its economic health and potential monetary policy direction.

MONDAY, July 27

The Monetary Authority of Singapore (MAS) tightened monetary policy for a second straight review, slightly raising the rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band.

Meanwhile, the city-state's manufacturing output rose 7.2% year over year in June, slowing from a revised 17.8% increase in May and missing the 9% forecast of Trading Economics.

Elsewhere, profits of China's major industrial firms grew 15.1% year over year in June, softer than the 21.1% gain in May.

TUESDAY, July 28

India is expected to see a year-over-year rise of 5.3% in industrial production in June, according to economists at ING. Manufacturing production is projected to increase 5%, based on a Trading Economics forecast.

South Korea will release consumer confidence data.

WEDNESDAY, JULY 29

Markets will be on the lookout for the U.S. Fed's interest rate decision, with Investing.com and Westpac expecting the regulator to keep the policy unchanged for the fifth straight meeting.

Elsewhere, Singapore is set to release domestic supply and manufactured products price index data, as well as export and import price figures.

THURSDAY, July 30

South Korea will release its business confidence report, while Japan publishes its consumer confidence data.

Singapore will report its unemployment statistics for June, with Investing.com projecting a 2.1% rise.

FRIDAY, JULY 31

Japan is expected to keep its interest rate steady at 1%, according to predictions by ING and Investing.com.

Japan's Usual End-of-Month Data Deluge

Inflation: Tokyo inflation figures will give further insights into Japan's inflation outlook. Tokyo's annual inflation rate is estimated to rise slightly to 1.8% in July, according to market consensus forecast data quoted by ING and Westpac Economics.

Retail Performance: June retail sales are expected to increase 2.8% year over year, according to a Trading economics consensus.

Activity: Industrial production is estimated to increase 1.8% compared with a 2.1% decline a year prior.

Unemployment: Japan's unemployment rate will likely remain unchanged in the month at 2.5%, according to a Trading Economics consensus.

Elsewhere, experts at ING forecast a slowdown of China's manufacturing PMI to 50.1 in July from 50.3 the previous month. Non-manufacturing PMI is expected to decelerate to 50 from 50.2 in the previous month.

ANZ Research, however, projects manufacturing PMI to fall to 49.9 amid a correction in commodity prices, which dampened business sentiment and corporate profit outlook, the Wall Street Journal reported citing Senior Rates Strategist Jennifer Kusuma.

Westpac Economics sees manufacturing activity as broadly stable, alongside a focus on domestic demand for services.

Other key indicators due Friday are South Korea's industrial output and retail sales data for June, as well as Singapore's business confidence report for the second quarter.

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