In this Asia Video Andrew Robinson, Correspondent for Saxo Capital Markets, looks at the state of inflation and growth in China and Singapore, based on recent key data, and gives his take on the local authorities’ expected monetary policy responses in light of this.

China’s trade surplus narrowed for the second consecutive month in September. The surplus shrank to $14.5 billion as both exports and imports declined. While the decline in exports was largely expected due to the global slowdown, the drop in imports caused most concern as domestic demand in China continues to show signs of weakness, thereby minimising its possible uplifting effect on the world's struggling economy.

Furthermore, if the shrinking of China's exports continues then this could bring into question the need at all amid this economic climate for an exchange rate oversight reform act in the U.S. to curb the import of cheap Chinese products in the U.S. So far Chinese reaction to such an act is of indifference, says Andrew.

China will release its September CPI data Friday and the outlook is for only a slight softening in price pressure, particularly due to food related improvements. Against this backdrop there is little expectation that Chinese authorities will change their stance on monetary policy in the near-term.

In Singapore, the Monetary Authority there will hold its semi-annual policy meeting Friday and also release provisional third-quarter GDP data. Due to the widespread effects of the global economic slowing and the continued high inflation backdrop domestically no change in monetary policy is expected here either.

See more of Andrew's Asian market commentary on TradingFloor.com