Asian equities could trade sideways as traders digest recent positive data from China. The Q1 GDP and March activity data exceeded expectations that supported regional currencies like the AUD and NZD. Conversely, risk assets price action due to weaker as disappointing earnings from Goldman Sachs. The report showed a growing concern for the upcoming quarters, as higher-than-expected expenses and weaker-than-expected revenue outweighed the profit beat.
Today’s domestic data calendar is empty, and markets’ core themes are dry, so traders will be preparing for Thursday’s PBoC 1 and 5-year Prime Rate, Friday’s options expiry in the US and earnings reports with all eyes on rising operational costs and margin contraction that could drive forward guidance expectations for equities in the coming quarters.
