Asia report: Markets mixed as Chinese imports surge beyond forecasts

9th May 2024 10:18

(Sharecast News) - Stock markets in the Asia-Pacific region finished in a mixed state on Thursday, with equities in China buoyed by robust import figures in the country.

Export figures, meanwhile, were in line with expectations, according to Beijing's latest customs data.

"China's trade surplus for April increased by less than anticipated, mainly due to a notable rise in imports," said TickMill market analyst Patrick Munnelly.

"Asian bond prices fell, following the sell-off in US Treasuries. Chinese stocks increased due to positive trade data and indications of property market support."

Munnelly noted that benchmark rates in Japan rose, while US government bond rates also increased after a "lukewarm response" to a $42bn offer of 10-year notes.

"Japanese rates went up after the central bank made a hawkish statement about its April meeting, discussing the potential reduction of bond purchases and the path for future rate hikes."

Markets in mixed state across region

In Japan, the Nikkei 225 experienced a slight dip of 0.34% to reach 38,073.98, while the Topix index managed a modest increase of 0.26% to close at 2,713.46.

Among the biggest decliners on Tokyo's benchmark were Yamato Holdings, down 11.86%; Taiyo Yuden, off 8.84%; and Mitsubishi Heavy Industries, which lost 6.44%.

Markets in China meanwhile showcased strength, with the Shanghai Composite rising by 0.83% to settle at 3,154.32, and the Shenzhen Component climbing by 1.55% to reach 9,788.07.

Chongqing Wanli New Energy and Changzhou Langbo Seal Polytron Technologies stood out with gains of 10.04% and 10.03%, respectively.

In Hong Kong, the Hang Seng Index jumped 1.22% to finish at 18,537.81, with notable gains seen in Lenovo Group, up 8.72%; Orient Overseas International, rising 6.12%; and Xinyi Solar, which was 5.78% higher by the end of trading.

South Korea's Kospi index meanwhile declined 1.2% to close at 2,712.14, impacted by losses from the likes of KakaoBank and Kumyang, which were down 6.05% and 3.83%, respectively.

Similarly, Australia's S&P/ASX 200 slipped by 1.06% to reach 7,721.60, influenced by notable downturns in Westpac Banking Corporation, down 5.63%, and Coronado Global Resources, which lost 5.58%.

Across the Tasman Sea, New Zealand's S&P/NZX 50 index experienced a marginal decrease of 0.31% to settle at 11,746.58, with Westpac Banking Corporation down 4.26% in Wellington trading, and Serko losing 3.9%.

In currency markets, the dollar was last 0.27% stronger on the yen to trade at JPY 155.95, while the greenback rose 0.06% against the Aussie to AUD 1.5208, and saw a slight uptick of 0.1% on the Kiwi to change hands at NZD 1.6673.

On the commodities front, Brent crude futures were last up 0.51% on ICE to $84.01 per barrel, while the NYMEX quote for West Texas Intermediate climbed 0.62% to $79.48.

Imports rise beyond forecasts in China, real wages fall in Japan

In economic news, fresh customs figures from China showed exports steadily increasing in April, meeting projections, while imports surged beyond forecasts.

Imports from key trading partners such as the U., European Union and Russia saw substantial growth last month, despite a dip in exports to those regions.

Globally, China's exports in April grew by 1.5% year-on-year in dollar terms, while imports saw an uptick of 8.4%.

Reuters polling anticipated exports to rise by 1.5% year-on-year and imports to increase by 4.8% compared to a year ago.

In Japan, real wages in the country saw a significant downturn, declining by 2.5% year-on-year in March, marking the 24th consecutive month of decrease.

The pace of decline accelerated from February, where a 1.8% drop was recorded.

Reporting by Josh White for Sharecast.com.