The recent record-breaking declines in Japanese industrial production are expected to moderate in March as export levels stabilize and companies rid themselves of excess inventory.

"A small rise in March would be consistent with the improvement in the business surveys and the stabilization in the export data," said Julian Jessop, economist with Capital Economics.

The consensus expects industrial production to climb 0.8% following a 9.4% drop the month prior, but it is still forecast to fall 34.7% from one year ago.

In New Zealand, the Reserve Bank of New Zealand is forecast to cut its target rate by 50 basis points, continuing its ongoing rate-cutting cycle designed to fend off the effects of a deteriorating economy.

Economists at Westpac said the latest report from the International Monetary Fund indicates New Zealand's trading partners will suffer a 2.8% contraction in growth - much more than what the RBNZ had been expecting.

"Forecasts for the Asia-Pacific region, which was previously expected to be relatively resilient, are now being revised down heavily," they said. With the dire outlook in financial markets and the climb in interest rates, there is a strong case for a 50 basis point cut, they said, although there is some possibility of a smaller 25 basis point cut.

All times in EDT.

Wednesday:

17:00 NZ RBNZ Official Cash Rate Exp: 2.5% Prior: 3.00%

18:45 NZ Building Permits (M/M) March Prior: +11.6%

19:15 JP Nomura/JMMA Manufacturing PMI April Exp: +28 Prior: +33.8

19:50 JP Industrial Production (M/M) March Preliminary Exp: +0.8% Prior: -9.4%

19:50 JP Industrial Production (Y/Y) March Preliminary Exp: -34.7% Prior: -38.4%

20:00 AU Conference Board Leading Index February Prior: -0.6%

21:30 AU Private Sector Credit (M/M) March Exp: +0.3% Prior: +0.0%

21:30 AU Private Sector Credit (Y/Y) March Exp: +4.8% Prior: +5.4%

21:30 AU NAB Business Confidence Q1 Prior: -42

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