Home / Business and Economy / China Trade Surges, Fed Rate Cut Looms
China Trade Surges, Fed Rate Cut Looms
8 Dec
Summary
- Chinese exports unexpectedly rose 5.9% year-on-year in November.
- Imports saw slower growth at 1.9%, resulting in a large trade surplus.
- Asian stocks showed mixed reactions ahead of the Federal Reserve's rate decision.
Asian stock markets presented a varied performance as trading commenced this week. Investors were closely analyzing China's recently released trade figures and the evolving geopolitical landscape between China and Japan. The global financial community is also keenly awaiting the Federal Reserve's critical interest-rate decision, scheduled for release this Wednesday.
China's economic data revealed a significant turnaround in its export sector. Shipments abroad increased by 5.9% year-on-year in November, a notable recovery from the previous month's decline. This positive export performance contributed to a substantial trade surplus of approximately $112 billion. Conversely, import growth was less robust, registering a 1.9% annual increase, falling short of analysts' projections.
The anticipation surrounding a potential 25 basis point rate cut by the Federal Reserve influenced currency markets, with the dollar weakening in Asian trade. Meanwhile, safe-haven assets saw increased activity, with gold prices firming above $4,200 per ounce and oil prices maintaining their levels near two-week peaks.
