Global markets will focus on several key events next week, including the release of the U.S. PCE inflation index, the annual World Economic Forum (WEF) meeting in Dalian, China, and the earnings report of memory chip manufacturer Micron Technology.

Meanwhile, investors are also awaiting developments regarding a potential peace agreement in the Middle East. Negotiations between the United States and Iran in Switzerland are still ongoing, despite reports indicating that some negotiators have already left the venue. Tensions have risen again after U.S. President Donald Trump threatened military action against Iran if Hezbollah continues its attacks on Israel.

However, according to Bloomberg News sources familiar with the negotiations, discussions concerning Iran’s nuclear program and the Strait of Hormuz remain underway. These developments have reduced part of the market optimism that had emerged following signs of easing tensions between the United States and Iran.

In Asia, market attention is centered on China’s Loan Prime Rate (LPR) decision.

Bloomberg Economics expects the benchmark lending rate to remain unchanged, as China continues to benefit from strong export performance and rapid growth in the artificial intelligence (AI) sector.

Nevertheless, several indicators suggest that China’s economy is beginning to lose momentum, prompting investors to closely monitor policy signals from the People's Bank of China. Bloomberg Economics still sees room for monetary easing over the medium term, with the next rate cut likely occurring toward the end of the third quarter of 2026.

Elsewhere in Asia, Thailand is expected to maintain its benchmark interest rate at 1%. Inflation remains within the 1%-3% target range, although the country continues to face structural challenges, including a shrinking working-age population, elevated household debt levels, and slower Chinese economic growth affecting Thailand’s tourism sector.

Singapore’s inflation rate is expected to rise in May due to higher energy costs linked to the Iran conflict. Bloomberg Economics forecasts annual inflation to increase to 1.9% from 1.8% in April. Nevertheless, the appreciation of the Singapore dollar, which serves as the country’s primary monetary policy tool, helps contain price pressures.

Japan is also expected to experience stronger inflationary pressure. Bloomberg Economics forecasts core inflation, excluding fresh food, to rise to 1.7% from 1.3% in May.

This trend reinforces expectations that the Bank of Japan may raise interest rates to 1.25% by December 2026 from the current 1%, according to Bloomberg Economics projections.

Inflation indicators for Japan show Bloomberg Economics estimates Tokyo CPI at 1.8%, compared with a consensus forecast of 1.6% and a previous reading of 1.4%. Core Tokyo CPI is projected at 1.7%, versus a consensus estimate of 1.6% and a prior level of 1.3%. Core-Core CPI is expected to reach 1.8%, matching consensus estimates and exceeding the previous 1.6%.

For the broader region, China’s LPR data will serve as an important gauge of economic health and regional demand, including for Indonesia, which counts China as its largest trading partner.

Meanwhile, Tokyo inflation data could influence expectations regarding future Bank of Japan rate hikes, potentially affecting global capital flows and bond markets across emerging economies, including Indonesia.

Singapore’s inflation data will also provide insight into whether energy-related price pressures stemming from Middle East tensions are easing or continuing throughout Asia.

Domestically, the Indonesian government is reportedly preparing an economic stimulus package consisting of fiscal incentives, food assistance, and transportation fare discounts.

The fiscal incentive will take the form of a 100% government-borne value-added tax (VAT) exemption for domestic economy-class airline tickets.

The government has allocated Rp472.2 billion for this program, targeting approximately 2.3 million passengers. An additional Rp190.5 billion has been prepared to fund discounts on land and sea transportation fares, benefiting around 3.07 million people.

The government will also provide assistance to lower-middle-income groups. However, the support will not be distributed as direct cash transfers but instead through internship programs.

The stimulus package is intended to support economic activity during two important periods: the June–July school holiday season and the Christmas and New Year holiday period later in the year.

Key events to monitor throughout the week include:

Monday, June 22, 2026:
Indonesia is expected to announce its second-half 2026 economic stimulus package. The Indonesian Parliament will hold a hearing on the bottled water industry. China will release its Loan Prime Rate. The Eurozone will publish consumer confidence data. Argentina will release unemployment figures. Canada will publish inflation data. The Federal Reserve and the Federal Reserve Bank of New York will host a conference on the international role of the U.S. dollar through June 23. ECB Governing Council member Martin Kocher will speak in Vienna. Germany’s Day of Industry conference will take place in Berlin. The Organization of American States General Assembly begins in Panama City and runs through June 24. Ireland’s Central Bank Macroprudential Conference continues through June 23. The Fourth China International Supply Chain Expo opens in Beijing through June 26.

Tuesday, June 23, 2026:
Indonesia awaits MSCI’s market classification review and plans to auction government bonds with an indicative target of Rp36 trillion. Singapore releases inflation data. South Korea publishes consumer confidence figures. Taiwan reports export orders and unemployment data. Argentina releases GDP figures. Brazil publishes central bank meeting minutes. Manufacturing PMI data are released across the Eurozone, France, Germany, the United Kingdom, Japan, India, and the United States. Hong Kong publishes inflation data. Spain releases trade balance figures. The World Economic Forum Summer Davos meeting takes place in Dalian through June 25. The Barclays-CEPR Monetary Policy Forum is held in London. South Africa’s Financial Stability Symposium begins in Pretoria. U.S. congressional primaries take place in Maryland, New York, and Utah. India’s Securities Appellate Tribunal hears Jane Street’s appeal. MSCI publishes its annual market classification review.

Wednesday, June 24, 2026:
Indonesia’s Parliament holds a public hearing regarding the Industrial Estates Bill. The United States releases current account and new home sales data. Thailand announces its interest rate decision. Taiwan publishes industrial production figures. Australia releases inflation data. Germany reports its IFO Business Climate Index. The Federal Reserve releases Wall Street bank stress-test results. Senior central bank officials participate in a global finance forum in Zurich. Reserve Bank of Australia and Bank of Japan officials deliver policy remarks. The Bank of Canada publishes its monetary policy discussion summary. The BOJ releases its Summary of Opinions. MWC Shanghai begins through June 26, focusing on AI, 5G, 6G, and digital connectivity. The APEC Tourism Ministers’ Meeting opens in Macau through June 28.

Thursday, June 25, 2026:
Japan releases its Leading Index and machinery orders. Australia publishes unemployment data. Mexico announces unemployment figures and an interest rate decision. Spain reports GDP data. Thailand releases trade balance figures. The United States publishes personal income, personal spending, the PCE price index, weekly jobless claims, durable goods orders, and GDP revisions. Officials from the Federal Reserve, ECB, BOJ, and Brazil’s central bank are scheduled to deliver policy remarks.

Friday, June 26, 2026:
Singapore releases industrial production data. Japan publishes Tokyo inflation figures. The Eurozone releases ECB inflation expectations. Mexico announces trade balance data. The United States reports leading economic indicators and the University of Michigan consumer sentiment survey. ECB Vice President Boris Vuj?i? speaks in Lisbon. European Union energy ministers meet to discuss the bloc’s electricity grid package.