WORLDWIDE: HEADLINES
China Nov export growth slows but imports accelerate
China’s exports growth lost steam in November, pressured by a strong yuan, weakening demand and higher costs, but import growth accelerated and came in well above expectations, pointing to stronger domestic activity.
Exports rose 22% on-the-year and imports jumped 31.7% in November, customs data showed on Tuesday.
Analysts in a Reuters poll had forecast November exports would increase 19.0% after jumping 27.1% the previous month.
Imports were forecast to have risen 19.8%, according to the poll, versus a 20.6% gain in October.
China posted a trade surplus of $71.72 billion last month, compared with the poll’s forecast for a $82.75 billion surplus. China reported an $84.54 billion surplus in October.
The data comes a day after China’s central bank announced a cut to the amount of cash that banks must hold in reserve, its second such move this year, to bolster slowing economic growth.
The country has staged an impressive rebound from the pandemic but there are signs momentum is flagging. Power shortages, regulatory crackdowns and debt troubles in the property sector are weighing on China’s recovery.
Full coverage: REUTERS
Developer China Evergrande’s shares firm as restructuring looms
Shares of China Evergrande Group (3333.HK) rose over 7% on Tuesday in early trading as the embattled developer moves closer toward a restructuring that has loomed for months over global markets and the world’s second-largest economy.
The market is watching if the real estate giant, which is grappling with over $300 billion in liabilities and is at risk of becoming China’s biggest ever default, has paid $82.5 million coupons with a 30-day grace period coming to an end.
A formal default it would trigger a wave of cross defaults that would ripple through the property sector and beyond, potentially rattling global investor confidence, already shaken by the emergence of the Omicron variant of the coronavirus.
Evergrande’s stock, which hit a record low on Monday, opened up at HK$1.93.
The world’s most indebted developer said on Monday it had set up a risk management committee that included officials from state entities which would play an important role in “mitigating and eliminating the future risks” of the group.
Full coverage: REUTERS
WORLDWIDE: FINANCE/MARKETS
Asia stocks tick up from one-year low, China gains on RRR cut
Asian stocks edged higher on Tuesday on receding worries about the impact of the Omicron variant while Chinese markets gained after the central bank there eased monetary policy.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) advanced 0.6% after declining on Monday to the lowest level in one year.
The benchmark has lost 6% so far this year, with Hong Kong markets figuring among the big losers, while Indian (.BSESN) and Taiwanese stocks (.TWII) outperformed.
On Tuesday, Australia’s S&P/ASX200 (.AXJO) rose 0.5%, while Japan’s Nikkei (.N225) advanced 1.1% as risk-on sentiment pushed U.S. stocks higher.
China’s CSI300 index (.CSI300) gained 0.7% and Hong Kong’s Hang Seng Index (.HSI) advanced 1.3% as the central bank freed up $188 billion in liquidity through a policy easing.
The People’s Bank of China said on Monday it would cut the amount of cash that banks must hold in reserve, its second such move this year, releasing the funds in long-term liquidity to bolster slowing economic growth.
The world’s second-largest economy, which staged an impressive rebound from last year’s pandemic slump, has lost momentum in recent months as it grapples with a slowing manufacturing sector, debt problems in the property market and persistent COVID-19 outbreaks.
Full coverage: REUTERS
Oil extends gains on easing Omicron fears, Iran delay
Oil prices edged up on Tuesday after a near 5% rebound the day before as concerns about the impact of the Omicron variant on global fuel demand eased while Iran nuclear talks hit roadblocks, delaying the return of Iranian crude supplies.
Brent crude futures rose 34 cents, or 0.5%, to $73.42 a barrel at 0124 GMT, after settling 4.6% higher on Monday. U.S. West Texas Intermediate crude was at $69.92 a barrel, up 43 cents, or 0.6%, building on a 4.9% gain in the previous session.
Oil prices were pummeled last week over concerns that vaccines might be less effective against the new coronavirus variant Omicron, sparking fears that governments may re-impose restrictions to curb its spread and hit global growth and oil demand.
However, a South African health official reported over the weekend that Omicron cases there had only shown mild symptoms. Also, the top U.S. infectious disease official, Anthony Fauci, has told CNN “it does not look like there’s a great degree of severity” so far.
“This lowers the probability of the worst case scenario that the oil markets have been pricing in over the past couple of weeks,” ANZ analysts said in a note.
In another sign of confidence in oil demand, the world’s top exporter Saudi Arabia raised monthly crude prices on Sunday. This comes after the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, agreed to continue raising output by 400,000 barrels per day in January despite the release of U.S. strategic petroleum reserves.
Full coverage: REUTERS
