Growth fears are soothed by China’s trade data
In March, China’s exports started surging again for the first time for 9 months, thus giving a hope for further stabilization in the world’s second largest economy. it gave regional investors a solid reason to cheer.
March exports surged 11,5%, as Wednesday’s data shows. That’s the first surge since June and the largest percentage soar since last year’s February.
Financial experts have already warned that the newly released data was greatly influenced by major effects as well as seasonal distortions from the Lunar New Year. Furthermore, from their point of view, it can hardly be regarded as strong evidence of greater global demand. Nevertheless, Chinese investors cheered and major stock indexes reached three-month highs, while the Yuan strengthened.
Most probably, China’s foreign trade sector will demonstrate upbeat signs compared to 2015, due to relatively low comparables. However, the given improvement won’t be dramatic, especially considering poor external markets.
Others have noticed evident improvement in PMI as well as other crucial indicators. That definitely points out to a certain degree of recovery in the second quarter.