In this Asia Focus Video Andrew Robinson, Correspondent for Saxo Capital Markets in Singapore gives insight into the strength of recent purchasing manager figures from China and confirmation of the Chinese economy’s resilience to negative global pressure. He also analyses the latest macro data from Down Under in light of the rate outlook ahead of the Reserve Bank of Australia’s first meeting this year.

The recent PMI data out of China for January was received with surprise and some suspicion, especially due to the Chinese Lunar New Year preparations and prolonged celebrations which mean that orders and deliveries are normally brought forward and therefore a retracement was expected in January. Despite the latest data giving an indication that a hard landing in China could possibly be avoided, or at least delayed, Andrew advises that data for February and March will give a better indication of where the Chinese economy is really heading this year.

Meanwhile, in Australia trade numbers for December were also quite strong with the surplus having increased more than expected though the main driver is still in the resource and mining sector of the economy of which coal production and exports are strong.

Concerning the Reserve Bank of Australia’s rate meeting next week market expectations are for a 75 percent chance of a 25 basis point cut. And with inflation not an issue, further rate cuts, probably in the vicinity of 100 basis points in total this year are highly likely given the state of global economic uncertainty.

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