Asian Markets Mixed as China’s Export Surge Fails to Quell Economic Concerns

Asian stock markets displayed a mixed performance on September 10, 2024, with the Indian market opening on a positive note amid global volatility. The Nifty 50 index rose by 71.50 points or 0.29% to 25,007.90, while the BSE Sensex climbed by 209 points or 0.26% to 81,768.72 points. This positive trend in Indian markets was attributed to global market trends and foreign investment inflows.China’s trade data released on September 10 showed exports growing at their fastest pace since March 2023, with an 8.7% year-over-year increase in August, exceeding expectations of 6.5%. The trade surplus widened to $91.02 billion, surpassing market expectations of $83.90 billion. However, imports rose by only 0.5% year-over-year, missing market estimates of 2.0%.Despite the strong export performance, concerns about China’s economic growth persisted. The Shanghai Composite fell 0.5% to around 2,720 on Tuesday, hitting fresh seven-month lows. This decline was partly due to the US government’s proposal of new sanctions on Chinese biotech firms. Jun Bei Liu, a portfolio manager at Tribeca Investment Partners, commented, ‘The stimulus, it clearly has to be more. But unfortunately, it’s been done in very, very small parcels and targeted, and it just seems the economy is just not turning around very quickly’.Investors are now focusing on the upcoming US inflation report due on Wednesday, which could provide clarity on whether the Federal Reserve will deliver a significant rate cut at its next meeting. Ajit Mishra, senior vice president of research at Religare Broking, noted, ‘A lot will depend on the performance of global markets, particularly the U.S., given the lack of major domestic triggers’.

Key points

• China’s exports grew 8.

7% year-over-year in August, the fastest pace since March 2023.

• Indian stock market opened positively, with Nifty 50 and Sensex showing gains.
• Investors await US inflation data, which could influence Federal Reserve’s decision on interest rate cuts.
• Concerns persist about China’s economic growth despite strong export performance.

Contradictions👾While China’s exports showed strong growth, its imports missed expectations, indicating weak domestic demand.

👾Despite positive trade data, Chinese stock markets fell due to concerns about economic growth and potential US sanctions.