Welcome to Your Week in Asia.
All eyes are on the tariffs that the U.S. is imposing on major trading partners, which President Donald Trump has said he will announce on April 2. On the same day, leaders of seven countries from South Asia and Southeast Asia will gather for the BIMSTEC summit In Thailand.
Earlier in the week, Muslims across the region will celebrate Eid al-Fitr, the day that marks the end of Ramadan. South Korea will lift a ban on short-selling imposed in 2020, while the Bank of Japan will release its Tankan quarterly economic survey.
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MONDAY
South Korea lifts short-selling ban
Short-selling will resume for all shares on Seoul's stock market, five years after a ban was imposed. The lifting of the ban is expected to help the South Korean market get its shares included in global indexes, for which Seoul has yearned for a long time. However, the move has also raised concerns over near-term volatility, particularly among individual investors.
Eid al-Fitr begins
Eid al-Fitr, the most important Muslim holiday that marks the end of a month of fasting during the daytime, is expected to begin. In Indonesia, home to the world's largest Muslim population, millions of people will travel to their hometowns to celebrate. It is the biggest consumer spending time in the country, but there are rising concerns among businesses that spending will drop this year as the middle class shrinks.
Data: China PMI
TUESDAY
BOJ Tankan
The Bank of Japan's Tankan quarterly sentiment survey will give investors their first chance to assess the impact on the Japanese economy of the steel and aluminum tariffs that U.S. President Donald Trump imposed on March 12. Economists expect the headline diffusion index to show a small setback, but not serious enough to derail the BOJ's monetary tightening campaign.
WEDNESDAY
BIMSTEC summit
Thailand will host meetings and the summit of a seven-nation regional grouping comprising mostly South Asian countries over three days from Wednesday, with member states expected to focus on strengthening transport connectivity. Indian Prime Minister Narendra Modi is among the leaders attending the summit of the BIMSTEC, or Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, and Min Aung Hlaing, Myanmar's military leader is also expected to join. BIMSTEC includes Bangladesh, Bhutan, Myanmar, Nepal and Sri Lanka besides India and Thailand.
Trump's tariff 'Liberation Day'
U.S. President Donald Trump is expected to end weeks of suspense and announce reciprocal tariffs on other countries, on what he has billed "Liberation Day" for American trade. His administration has already targeted neighbors Canada and Mexico and superpower rival China with new tariffs while imposing additional levies on steel, aluminum and most recently automobiles. The scope of the coming duties remains unclear, with Trump hinting that he could be "lenient" in some cases, but countries the U.S. has referred to as the "dirty 15" are feeling the heat.
FRIDAY
India's Modi visits Sri Lanka
Modi will fly to Sri Lanka for a three-day state visit after the BIMSTEC summit in Thailand and hold discussions with Sri Lankan President Anura Kumara Dissanayaka. The island nation was seen as becoming more pro-China during the administration of former President Gotabaya Rajapaksa, but Dissanayake, who took office in September last year, chose India for his first overseas visit, a move widely seen as tipping the balance between the two big powers. Several memoranda of understanding are expected to be exchanged.