Shares were mixed in Asia on Tuesday, with investors encouraged by strong growth in Chinese trade in September.
An overnight rally on Wall Street, mostly fueled by tech companies like Apple and Amazon, faded amid concerns about the U.S. economic recovery and a resurgence in the number of coronavirus cases in many countries.
But the release of stronger trade data in Beijing helped Tokyo recover from early losses. Shanghai refused. The Hong Kong market was closed for a typhoon.
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Chinese exports rose 9.9% from a year earlier to reach $ 239.8 billion in September, while imports rose 13.2% to $ 202.8 billion. Customs data on Tuesday showed exports to the United States rose 20.5 percent to $ 44 billion despite higher U.S. tariffs, while imports of U.S. goods rose 24.5 percent to reach $ 13.2 billion.
Chinese exporters have benefited from China’s relatively early reopening following pandemic shutdowns and strong global demand for masks and medical supplies. They have taken market share from foreign competitors who are hampered by anti-disease controls.
“Exports have continued to perform well, possibly on the back of recent strength in retail sales among China’s major trading partners. And a surge in imports suggests that domestic investment spending remains robust, ”Capital Economics’ Julian Evans-Pritchard said in a report.
Traders were keeping an eye on the Chinese currency after the central bank removed the requirement for currency traders to deposit cash deposits, paving the way for more negative speculation on the country’s yuan, which could help limit its increase in value.
The change took effect on Monday and removes a requirement imposed in 2018 for a 20% deposit on yuan transactions to deter speculators.
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The recovery of the world’s second-largest economy has been a rare bright spot as investors wait to see whether the US Congress manages to provide additional economic assistance to Americans and businesses struggling due to the coronavirus pandemic. With an increase in the number of cases in the United States, Europe and many other countries, the risks of further disruption to commerce, business and other daily activities are increasing in some areas.
Tokyo’s Nikkei 225 index edged up 0.2% to 23,601.78, while the Shanghai composite index slipped 0.1% to 3,355.72. South Korea’s Kospi was almost unchanged at 2,402.91. Actions were mixed in Southeast Asia.
Indian Sensex was up 0.2% to 40,681.15.
The Australian S & P / ASX 200 climbed 1% to 6,195.70, led by gains in bank stocks. Strong Chinese demand is good news for Australian exporters, although unconfirmed reports that Beijing is slowing or halting Australian coal imports have raised concerns about the economic impact of political friction between the two countries.
Wall Street extended its gains on Monday from last week’s rally, the market’s best in three months, as investors largely seemed to ignore the latest signs that Democrats and Republicans remain distant on the issue of increased aid to the economy.
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The S&P 500 rose 1.6% to 3,534.22, with stocks of major techs including Apple and Microsoft fueling much of the gains. The benchmark index now sits at 1.4% from its all-time high on September 2.
Investors may be betting Congress will come up with a more generous aid bill after the November 3 election.
Analysts expect the next earnings season to post another quarter of weaker earnings. According to FactSet, S&P 500 earnings are expected to decline 20.5% from a year earlier, better than the 31.6% decline recorded in the spring.
In energy trades, the US benchmark crude gained 37 cents to $ 39.80 a barrel in electronic trading on the New York Mercantile Exchange. It lost $ 1.17 to $ 39.43 a barrel on Monday.
Brent also added 37 cents, at $ 42.09 a barrel.
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The US dollar strengthened to 105.37 Japanese yen from 105.34 yen. The euro weakened to $ 1.1799 from $ 1.1896.
AP business editor Joe McDonald in Beijing contributed.