In this Asia Focus video Andrew Robinson, Correspondent for Saxo Capital Markets in Singapore gives insight into recent Chinese data and what it tells about the all-important economy and the chances for monetary easing soon. He also comments on poor trade data for Japan and the Reserve Bank of Australia’s failure to cut rates at its first meeting this year.

Chinese CPI and PPI data for January produced mixed results. Excessive spending related to the Chinese Lunar New Year celebrations undoubtedly played a significant role in the much higher than expected CPI data. PPI came in on the soft side and is positive news as it indicates there is reduced pipeline pressure. The combined effect being though that the stance of the People’s Bank of China on monetary easing ahead (particularly considering the continued debt saga in Europe) is likely to be unchanged.

Japan posted its biggest trade deficit since 1963 in 2011 and flash numbers for January indicate more negative numbers are on the cards this year too. The Japanese economy is believed to be hurting so much that Japanese exporters are looking more and more into manufacturing goods abroad.

While the outcome of the Reserve Bank of Australia’s first policy meeting of this year shocked, in that no rate cut was announced despite high expectations, it is still largely deemed that more rate cuts will come, though the market probably won’t get too carried away about the size nor timing next time around says Andrew.

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