SIMIC

Early indicators show China's recovery isn't headed in a positive direction. China's uneven recovery was initially driven by strong industrial output. A strong and broad spurt in spending is needed for a total economic rebound.

Home sales in China's four largest cities slowed in the first three weeks of September, opposite of August. Small-business confidence eased after rising for six months as expectations rose in growth territory.

"This suggests that the recovery continued uninterrupted, despite signs that the V-shaped rebound is losing momentum," said economists Shen Lan and Ding Shuang.

Purchasing manager indexes are expected to show September manufacturing improvement. Meanwhile, exports for smaller businesses will remain resilient.

Korean exports are up 3.6 per cent in the first 20 days of September, demonstrating a positive outlook for global trade. However, daily shipments from South Korea are down 9.8 per cent.