A couple of Chinese data releases over the weekend showed that the growth in China’s November factory output and retail sales jumped to 8-month highs, which suggests the world’s second largest economy is in the process of rebounding. This has supported sentiment in early trade and optimism is prevailing in almost all Asian stock indices except for Taiwanese Taiex. However, after the release of the less than impressive Chinese trade balance data, Chinese markets, such as Hang Seng and Shanghai Composite came off their early highs, this move has been pared in the following 10 minutes.
Over in Japan, lower than expected Q3 GDP indicated that the Japanese economy is continuing to contract, contracting for the second straight quarter which is technically a recession; shrinking by an annual rate of -3.5% in Q3. The ongoing dispute over islands in the East China Sea has dented Japan’s exports as anti-Japanese sentiment grew in China with consumers refusing to purchase Japanese good.
The ASX 200 is currently trading up 0.29% with the Basic Material sector leading the index; This is due to the outperformance of mining stocks on the back of spot iron ore trading higher, rising above USD 120 a ton again amid optimism over Chinese demand. Spot gold has also seen gain (USD 1706.69). Meanwhile, AUD/USD traded marginally lower at the beginning of session, however, an immediate 18 pips fall in this pair was observed after the disappointing Chinese November trade balance data as AUD is seen as a proxy for Chinese economic performance.
Heading into the second half of today’s Asian session, we have Japanese Eco Watchers Survey due at 0600GMT/0000CST.
As of 0248 GMT:
ASX200 (+0.29 %), Nikkei 225 (+0.25%), Shanghai Comp. (+0.73%), Hang Seng (+0.67%), KOSPI (+0.16%)
10 Dec 2012 - 08:50 - Equities Data - Source: RANsquawk
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