The Asian indices ended mostly in red on Monday, on dismal Chinese trade data, raising concerns about a deepening slowdown in the world’s second-largest economy. China’s trade performance slumped in January, with exports falling 3.3 percent from year-ago levels, while imports tumbled 19.9 percent, far worse than expected, highlighting deepening weakness in the Chinese economy. Largely as a result of the sharply lower imports - particularly of coal, oil and commodities - China posted a record monthly trade surplus of $60 billion. The slide in imports is the sharpest since May 2009, when Chinese factories were still slashing inventories in reaction to the global financial crisis. Exports have not produced a negative annual reading since March 2014. The dismal trade performance will increase concerns that an economic slowdown in China - originally considered a desirable adjustment away from an investment-intensive export model toward one based on domestic consumption - is at risk of derailing.
Japan’s central bank policymaker stated that the country will not slip back into deflation as improvements in the economy offset the temporary pressure on prices from slumping oil costs, signaling that no immediate expansion of monetary stimulus was necessary. Taiwanese Trade Balance rose to a seasonally adjusted annual rate of 4.80B, from 4.45B in the preceding month.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,095.12 | 19.22 | 0.62 |
Hang Seng | 24,521.00 | -158.39 | -0.64 |
Jakarta Composite | 5,348.47 | 5.96 | 0.11 |
KLSE Composite | 1,811.58 | -1.67 | -0.09 |
Nikkei 225 | 17,711.93 | 63.43 | 0.36 |
Straits Times | 3,418.02 | -13.34 | -0.39 |
KOSPI Composite | 1,947.00 | -8.52 | -0.44 |
Taiwan Weighted | 9,421.50 | -34.68 | -0.37 |