Asian markets rally higher on US data

Monday, December 09, 2013

Asian markets rallied significantly higher as markets continue to absorb last week’s bullish US and Chinese data. Japanese equity markets led the charge with the Nikkei adding 2.29% and the TOPIX gaining 1.58%. Positive surprises in the US labour market as jobless claims and non-farm payrolls came in better than anticipated as well as encouraging manufacturing PMI readings which have boosted market optimism, supporting risk assets higher in recent sessions.

Chinese trade data released over the weekend points towards recovering export growth as global demand gradually recovers. Export growth accelerated to 12.7% y/y, massively outstripping the median estimate of 7% growth y/y compiled in a Bloomberg survey. Import growth fell to 5.3% y/y in November from 7.6% y/y the previous month, well below the 7% expected by market participants as the trade surplus climbed towards $33.8bn for the first time since January 2009. CPI data released by the National Bureau of Statistics earlier this morning indicated a 3% y/y increase in November, marginally lower than the 3.1% median forecast compiled by Bloomberg. Chinese equity indices were relatively stable throughout the session with both the CSI 300 and Shanghai Composite closing flat.

European equity indices have opened higher this morning as the positive sentiment from the Asian session carries over into European trading. Market participants continue to digest the positive US employment data released last week and will have German industrial production figures to look forward to later today. German trade data released earlier this morning indicated better than expected export growth in October, coming in at 0.2% m/m against -0.5% m/m forecast.

China's trade surplus rises to the highest level since January 2009

CNFRBAL Index China Imports 2013 12 09 08 11 32

Events for today: Monday, 9 December 2013



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