We’ve got a bit of data to chew on to kick off the Tuesday session, with the focus squarely on Japan early on and China a bit later.

It’s going to be an interesting start to the day.

First up at the top of the hour, we get the Reuters Tankan Manufacturing Index. It’s a monthly sentiment check that often leads the official BoJ Tankan. The prior read was 17 for manufacturing and 27 for non-manufacturing.

Shortly after at 2350 GMT, keep an eye on the Japanese Corporate Goods Price Index (CGPI) for November.

Reminder: The BOJ decision is next week and a hike is mostly expected.

The Main Event: China CPI

The real mover comes later in the evening (0130 GMT) when China drops its inflation numbers.

The market is looking for a rise in CPI year-over-year to 0.7% (from 0.2% prior). If we see a miss here, the “China deflation” narrative is going to roar back into the headlines, and we could hear more talk about stimulus (that talk has restarted lately).

PPI is expected to remain deep in negative territory at -2.0% y/y.

Complete schedule:

2200 GMT

2250 GMT

0130 GMT

• CN: PPI (YoY) (Nov) – Exp: -2.0% / Prior: -2.1%

• CN: CPI (YoY) (Nov) – Exp: 0.7% / Prior: 0.2%

• CN: CPI (MoM) (Nov) – Exp: 0.2% / Prior: 0.2%