Australia | Feb 08 2013
Download related file: afternoon_report_2013-02-08
The analyst principally responsible for the production of this research report is: Howard Humphreys, Director & Lead Research Analyst, Seismic Research
Asia ex. Japan rallies on strong China trade data
Asian markets, with the notable exception of Japan, rallied today after a report showed China’s exports and imports grew more than expected last month. China posted a trade surplus of US$29.12Bn in January, above the median estimate of US$24.7Bn but down from US$31.6Bn in December, as imports and exports surged 28.8% and 25.0%, respectively. The year-on-year trade data was distorted, however, because January this year had five more working days (in China) than last year; Chinese New Year was in January in 2012, but it starts tomorrow this year.
Nomura’s Chief Economist in Hong Kong, however, said the “strong export number cannot be fully explained by the Chinese New Year effect alone”, the data suggests “external and domestic demand are both strong”. Aside from China, Japanese markets plummeted on the back of a report showing that the nation recorded back-to-back current account deficits for the first time since 1981.
To read today's report in PDF in full, see link at the top of this story.
(For a more comprehensive summary of last night’s market action see FNArena’s Overnight Report.)
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