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