China exports climbed, is it a sign of economic recovery?

China exports climbed, is it a sign of economic recovery?

Wed Feb 12, 2014


Coming back from Chinese New Year holidays known as “Lunar New Year “  or  “Spring Festival” , the Asian markets resumed its dynamic trading since  the last week and recorded gains during this week, after China surprised markets with a better than expected trade performance in January as import growth hit a six-month high.

 In fact, Asian stocks rose today on better-than-expected Chinese trade data and as investors optimism about Federal Reserve Chair Janet Yellen's supporting to U.S. monetary policy.
China's exports jumped unexpectedly in January to 10.6% from 1.3% on the previous year, a potentially positive sign for the world's second-largest economy even as it raised fresh doubts about the reliability of China's trade data.
Also the imports rose to its highest level since July, up beating expectation for an increase of 3%. And the country's trade surplus rose to $31.9 billion, well above forecasts of $23.7 billion.
Accordingly, Japan's benchmark Nikkei index resumed today’s trading at a near two-week high after being shut on Tuesday for a public holiday.

Therefore, Asian markets are recovering after the turmoil of emerging markets during the previous month, as EM started the year negatively, with currency devaluation in Argentina and Turkey provoked the vulnerable markets which hurtled the currencies from the South African rand to the Russian ruble.

On the other hand, Yellen‘s support to the Fed tapering and better-than-expected China January exports and imports data may increase risk appetite while will affect the safe have assets demand like Gold.

Asian investors were hopeful after the positive Chinese trade data which calmed down the worries on speculation of possible economic slowdown of China.

Can China maintain its economic recovery and beat USA to be the world’s largest exporter and importer this year?

MBCFX Forex & CFDs Brokerage Firm