Asia report: Markets mixed as China trade data surprises

Investors in the Asia-Pacific region reacted to stronger trade data out of China on Tuesday, resulting in a mixed performance for the region’s stock markets.

The trade data showed a jump in exports and a larger trade surplus from China, surprising economists.

“Asian equity markets traded with a mixed tone overnight after a subdued handover from Wall Street,” said TickMill Group market analyst Patrick Munnelly.

“The much anticipated Senior Loan Officers Opinion data suggested that the banking turmoil in the US had impacted credit conditions stateside with the appetite for credit receding as loan demand declined in the aftermath of the Silicon Valley Bank failure.

“The Nikkei was once again the standout performer overnight as the Japanese benchmark reclaimed the 29,000 handle, as rhetoric from Bank of Japan chief Ueda continued to point towards extensive policy review as opposed to immediate action on the banks yield curve control strategy.

“Chinese data overnight surprised to the downside as further concerns regarding the reopening narrative emerged - while export data exceeded expectations, a sharp drop in import data highlighted fears around consumer demand.”

Japan bourses rise, most of region in the red

In Japan, the Nikkei 225 index closed up 1.01% at 29,242.82, while the broader Topix advanced 1.27% to 2,097.55.

Among the top performers on Tokyo’s benchmark were JFE Holdings, which gained 14.51%, Kawasaki Kisen Kaisha, which rose by 9.26%, and Sumitomo Corporation, which climbed by 6.65%.

On the mainland, the Shanghai Composite index in China dropped by 1.1% to 3,357.67, while the Shenzhen Component index fell by 0.9% to 11,125.02.

Some of the worst performers in Shanghai were Changjiang Media, which dropped by 10.01%, and China Aluminum International Engineering, which fell by 9.99%.

Hong Kong's Hang Seng Index also closed in negative territory, with a loss of 2.12% to 19,867.58.

SMIC dropped by 7.4%, while Shenzhou and Alibaba Health Information Technology declined by 6.03% and 5.47%, respectively.

South Korea's Kospi index closed with a slight decline of 0.13% at 2,510.06, with Hanwha Solutions down 2.3%, and Korea Aerospace declining by 6.97%.

Australia's S&P/ASX 200 index closed with a small loss of 0.17% at 7,264.10, with Charter Hall Group dropping by 4.24% and Perseus Mining falling by 3.6%.

Finally, in New Zealand, the S&P/NZX 50 index fell by 0.44% to 11,889.61, with Tourism Holdings declining by 9.41% and Fletcher Building dropping by 3.95%.

In currency markets, the yen was last 0.02% stronger on the dollar at JPY 135.07, while the Aussie and Kiwi both weakened against the greenback, by a respective 0.31% and 0.13% to change hands at AUD 1.4789 and NZD 1.5782.

On the energy front, Brent crude and West Texas Intermediate futures were both in the red, with the former last down 0.95% on ICE and the latter 0.97% lower on NYMEX respectively, to $76.28 and $72.45 per barrel.

China’s trade data surprises to the upside

In economic news, China's exports continued to grow for a second consecutive month in April, rising by 8.5% year-on-year according to fresh official data out of Beijing.

Imports, meanwhile, fell 7.9% for the month, as the country’s trade surplus increased to $90.21bn, from $88.2bn in March.

The positive data came as a surprise to market watchers, who had forecast a smaller increase of 8% for exports and flatness for imports.

A Reuters poll also predicted a lower trade surplus, of $74.3bn for April.

“Chinese exports are likely to slow in the coming months, in view of global weak demand,” said Pantheon Macroeconomics chief China economist Duncan Wrigley.

“Export new orders dipped 2.8 points to 47.6 in the official April manufacturing PMI.

“The global outlook is darkening, with further American bank failures likely to hit credit creation in the US, and German factory orders collapsing.”

Elsewhere, Japan’s household spending fell 1.9% year-on-year in March, going against economists’ expectations, who had pencilled in growth of 0.4%.

On the month, household spending declined 0.8%, also going against an anticipated increase of 1.5%.

Finally, Australia’s retail trade contracted for the second consecutive period, shrinking 0.6% in the first quarter when compared to the fourth quarter of 2022, according to official data.

The seasonally-adjusted turnover in volume stood at AUD 96.2bn for the period, in line Reuters-polled estimates.

Reporting by Josh White for Sharecast.com.

NIKKEI 225 +292.94 (+1.01%) 29,242.82

RISERS
JFE Holdings +14.51% JPY 1,870.0
Kawasaki Kisen Kaisha +9.26% JPY 3,480.0
Sumitomo Corp +6.65% JPY 2,645.0
Kobe Steel +5.61% JPY 1,073.0
Fuji Electric +4.96% JPY 5,710.0

FALLERS
Ricoh -6.8% JPY 1,055.0
Chiyoda Corp -5.91% JPY 382.0
Toyobo -1.22% JPY 1,051.0
Konica Minolta, Inc -1.03% JPY 575.0
Tokuyama Corp -1% JPY 2,171.0

SHANGHAI COMPOSITE -37.33 (-1.1%) 3,357.67

RISERS
Beijing Urban Construction Investment & Development +10.11% CNY 5.23
Anhui Transport +10.02% CNY 16.36
China Reform Culture Holdings +10.02% CNY 16.25
China Film +9.99% CNY 18.28
China TV Media +9.99% CNY 15.86

FALLERS
Changjiang Media -10.01% CNY 11.42
China Aluminum International Engineering -9.99% CNY 6.31
Inly Media -9.43% CNY 11.81
Duzhe Publishing & Media Co -7.47% CNY 7.93
IReader Tech -7.46% CNY 29.90

HANG SENG INDEX -429.45 (-2.12%) 19,867.58

RISERS
HK & China Gas +6.25% HKD 7.65
China Shenhua Energy Co Ltd H +1.98% HKD 28.35
Wharf Real Estate +1.07% HKD 42.45
China Overseas +0.73% HKD 20.60
BOC Hong Kong +0.2% HKD 24.95

FALLERS
SMIC -7.4% HKD HKD 19.26
Shenzhou International Group Holdings -6.03% HKD 71.70
Alibaba Health Information Technology -5.47% HKD 5.18
WuXi Biologics -4.96% HKD 45.05
Baidu -4.46% HKD 115.60

KOSPI 100 -4.2 (-0.17%) 2,471.74

RISERS
Celltrion +5.79% KRW 171,800
SK Bioscience +5.41% KRW 81,900
HD Korea Shipbuilding & Offshore Engineering +5.11% KRW 88,400
Daewoo Shipbuilding +4.53% KRW 26,550
Hyundai Heavy Industries +4.04% KRW 113,300

FALLERS
Korea Aerospace -6.97% KRW 50,700
Hanwha Solutions -2.3% KRW 44,700
FF Co -2.02% KRW 141,000
Doosan Heavy Industries & Construction -1.71% KRW 15,540
Meritz Financial -1.65% KRW 44,700

S&P/ASX 200 -12.40 (-0.17%) 7,261.10

RISERS
Mineral Resources +2.93% AUD 73.50
Worley +2.87% AUD 16.47
Allkem +2.8% AUD 12.83
Infratil +2.47% AUD 8.72
Macquarie Group +2.27% AUD 177.43

FALLERS
Charter Hall Group -4.24% AUD 10.83
Perseus Mining -3.6% AUD 2.14
Capricorn Metals -3.51% AUD 4.40
EVT -3.3% AUD 11.71
Stockland -3.06% AUD 4.44

S&P/NZX 50 -52.88 (-0.44%) 11,889.61

RISERS
Mercury NZ +1.72% NZD 6.49
Stride Property +1.55% NZD 1.310
Synlait Milk +1.42% NZD 1.43
Scales +1.21% NZD 3.34
Ryman Healthcare +1.14% NZD 5.34

FALLERS
Tourism Holdings -9.41% NZD 3.85
Fletcher Building -3.95% NZD 4.62
Pacific Edge -3.41% NZD 0.4250
A2 Milk -2.78% NZD 5.60
SkyCity Entertainment -2.6% NZD 2.25