This week, inflation trends and central bank actions are expected to have a big impact on market sentiment throughout Asia.

Investors will be keeping an eye on key data releases, including China's lending rates, Bank Indonesia's interest rate decision, and inflation figures from Malaysia, Singapore, and Hong Kong.

South Korea's preliminary first-quarter GDP estimate, Tokyo's inflation figures, and Taiwan's industrial production data will also be monitored by market observers.

Here's a rundown of the major events to watch this week.

MONDAY, April 21

The People's Bank of China kept the one-year and five-year loan prime rates unchanged at 3.1% and 3.6%, respectively. The decision was in line with market expectations.

In Indonesia, March exports rose 3.16% year over year. While the print represented a sharp deceleration from February's 14.05% growth, it surpassed forecasts of a 3.4% contraction.

Imports, meanwhile, climbed 5.34%, falling short of the projected 6.6% gain.

Consequently, trade surplus fell to $4.33 billion from $4.58 billion a year earlier, but came in above estimates of $2.64 billion in surplus.

TUESDAY, April 22

Taiwan's export order data will offer a glimpse into trade activity just before the unveiling of the Trump administration's hefty tariffs.

"Data in March is likely to have remained strong as importers ramped up orders ahead of reciprocal tariffs. We're looking for a slight moderation of export orders to around 27% year on year in March," ING Bank said in a note.

Additionally, South Korea will release its producer price index for March, and Hong Kong will publish its March unemployment rate on Tuesday.

WEDNESDAY, April 23

Wednesday brings a wave of inflation data, offering insights into regional price pressures.

Malaysia: ANZ analysts anticipate a slight acceleration in headline inflation to 1.8% in March, up from February's 1.5%, driven by modest increases in food, healthcare, and transport costs.

Singapore: Goldman Sachs projects headline inflation in the city-state to have edged up to 1.2% year-on-year in March, compared to 0.9% in February.

Hong Kong: Consensus forecasts suggest a marginal rise in consumer price inflation to 1.5% in March from 1.4% the previous month.

In other news, Bank Indonesia is widely anticipated to hold rates at Wednesday's policy meeting. Currency depreciation pressures make a rate cut unlikely in the near term, though the possibility of easing later in the year remains on the table, according to S&P Global Market Intelligence.

Furthermore, Taiwan will publish its industrial production and retail sales data for March. In a note, ING Bank said it expects Taiwan's industrial output growth to moderate to 13.4% YoY from 17.9%.

Also scheduled for release midweek are the Japan Jibun Bank April Flash PMI, Australia Judo Bank Flash PMI, India HSBC Flash PMI, and New Zealand's trade data.

THURSDAY, April 24

South Korea's economy likely stagnated in the first three months of 2025, according to a Wall Street Journal poll of economists.

The median forecast shows zero year-on-year gross domestic product growth in Q1, a sharp slowdown from the 1.2% expansion in Q4. On a quarterly basis, GDP rose 0.1%, unchanged from the previous quarter.

Analysts cited the impact of widespread wildfires, political instability following the president's impeachment, and headwinds from US tariff tensions as reasons for the slowdown. These factors are all likely to have lowered consumer morale and overall economic activity.

FRIDAY, April 25

Tokyo's consumer price inflation is a key indicator to watch this week, with ING Bank forecasting an acceleration in April.

Surveys suggest upward price adjustments by companies are planned for this month, which are expected to offset any downward pressure from easing fresh food prices due to the government's rice reserve release.

Despite this likely uptick in inflation, the Bank of Japan is still expected to hold its policy rate steady later this month, largely due to the considerable uncertainty surrounding US trade policy.

Also scheduled for release on Friday are Singapore's industrial production data and Thailand's trade figures.

SUNDAY, April 27

Data on China's industrial profits for January to March will be released on Sunday. Markets will watch for any signs of a turnaround following declines in the first two months of 2025.