Asian equities go down on slumping China’s exports

Asian equities go down on slumping China’s exports

On Monday, Asian equities tumbled following a substantial contraction in China’s exports that hinted at deepening cracks in the world's number two economy and increased worries of a steeper deceleration in global surge as well as and corporate profits.

As a matter of fact, E-minis for the S&P 500 went down by 0.8%, thus indicating increased risk aversion. As for spreadbetters, they demonstrated a poor start for the European bloc, while FTSE futures went down by 0.4%.

China’s fresh data disclosed that in December imports went down by 7.6% year-on-year, while experts had hoped for a 5% ascend. Besides this, exports suddenly went down by 4.4%, confounding hopes for a 3% leap.

The dismal numbers backed worries that American duties on Chinese experts were starting to heavily impact the Chinese decelerating economy.

Decelerating demand in China is already being perceived around the globe, with decelerating sales of goods varying from cars to iPhones.

A major indicator of global risk sentiment as well as a liquid proxy for China’s Yuan, the Australian dollar rebounded from a one-month maximum of $0.7235 recorded on Friday to $0.7186 following the dismal data.

Besides this, MSCI's index of Asia-Pacific equities went down by 1% from Friday's 1-1/2 month maximum, thus demonstrating its most impressive single-day slump since January 2.

As for Chinese equities, they found themselves in the red. The blue-chip index CSI300 headed south by 0.7%. The Hang Seng index dived by 1.5% in Hong Kong, while Australian equities AXJO rebounded from early gains, concluding the trading session generally intact.

Some financial analysts expect Monday's trade report to provide impetus to the Chinese cabinet to tackle the trade dispute with America.

The world's two leading economies have been negotiating for months with the aim of resolving their bitter trade conflict, without any signs of any significant progress in talks.

Similar

Latest news

USD strengthened as optimism waned
USD strengthened as optimism waned

The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.

Stocks up, USD down
Stocks up, USD down

S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

Manager will call your number

Correct number

Your request is accepted

Manager will call your number

Next callback request for this phone number
will be available in {time}

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera