- Japan’s exports are expected to rise 11.4 percent year-on-year in July, while imports are expected to rise 14.9 percent.
- July will be the last month to record trade data before the Bank of Japan raises interest rates in late July, causing the yen to strengthen dramatically.
Markets in Asia-Pacific are expected to open lower on Wednesday, with Wall Street seeing both the S&P 500 and Nasdaq Composite end their eight-day winning streak.
The S&P 500 lost 0.2 percent, while the Nasdaq Composite lost 0.33 percent. The Dow Jones Industrial Average lost 0.15 percent. Had the S&P held on to its gains on Tuesday, it would have been the broad index’s longest winning streak since 2004.
In Asia, investors will assess Japan’s trade data for July. Economists polled by Reuters forecast that exports are expected to be 11.4 percent higher from the same period last year, while imports are expected to rise 14.9 percent.
July will be the last month to record trade data before the Bank of Japan raises interest rates in late July, causing the yen to strengthen dramatically.
A weaker yen typically benefits Japanese exporters and trading houses, the heavyweights in the Nikkei 225, whose rise has been key in pushing the index to its record highs.
Japan’s Nikkei 225 futures pointed to a weaker market open, with the Chicago futures contract at 37,560 and its Osaka counterpart at 37,530, compared to the previous close of 38,062.92.
Futures for the Australian S&P/ASX 200 were at 7,897, slightly below their previous close of 7,997.7.
Futures for the Hang Seng Index in Hong Kong were at 17,360, below the HSI’s last closing price of 17,511.08.
— CNBC’s Alex Harring and Hakyung Kim contributed to this report.
