Chinese trade data lifts Asian markets
With the overnight treasury auctions passing without incident, Wall Street equities continued to rise modestly. The street was pricing in no US CPI surprises and anticipating another solid quarterly earnings season kicking off this week.
That was enough on its own to greenlight a positive start to trading in Asia, which was boosted by impressive China trade data this morning as well.
The robust China trade data will be a shot in the arm for Asia, though, and a sense of relief across the region will be palpable, as positive news is certainly needed with the resurgence of COVID.
Hong Kong’s Hang Seng leapt by 1.60% after Tencent (OTC:TCEHY) gained unconditional approval from the Chinese Government to complete an acquisition. Singapore and Taipei rose 0.75%, with Kuala Lumpur and Bangkok climbing 0.35%, while Jakarta edged 0.10% lower following the BI growth downgrade.
The prospect of an extended lockdown in Sydney has not dented confidence in Australia, with resources and banks outperforming and a federal support package announcement imminent for NSW. The ASX 200 rose 0.20%, while the All Ordinaries was 0.40% higher.
European stock markets should follow the default setting from Wall Street and Asia and rise gently at the commencement of trading. Only a surprise jump in German and French inflation data is likely to crack confidence ahead of the US inflation data later this evening. Otherwise, I expect equity markets to market time ahead of that release.