Asian Shares Fall After China Trade Data

13/10/2015 06:58 AST

Most Asian markets fell after Chinese export data added more evidence that the world’s No. 2 economy is stalling.

The Shanghai Composite Index was down 0.1% at 3285.07, while Hong Kong’s Hang Seng Index was last down 0.2% at 22682.41.

Japan’s Nikkei Stock Average and Australia’s S&P/ASX 200 were each down more than 0.5%.

Chinese exports fell 1.1% in yuan terms from a year earlier in September, after a 6.1% decline on year in August, according to the General Administration of Customs.

Meanwhile, imports fell 17.7% in yuan terms compared with a 14.3% decrease in August. Trade figures in U.S. dollar terms weren’t immediately available.

Before the data, Beijing guided the yuan stronger by the biggest percentage in nearly one year. It fixed the currency up 0.28% at 6.3231 to one U.S. dollar.

The data follows the central bank’s weekend announcement to boost stimulus measures and could fuel expectations that more is on the way. Such hopes helped lift the Shanghai Composite Index 10% from its bottom on Aug. 26 as of Monday’s close.

The results also add to concern about China’s slowdown, which has shaken global markets and regional economies that rely heavily on Chinese demand. That pressure has sent emerging-market currencies and commodities to multiyear lows.

Both the Malaysian ringgit and Indonesian rupiah were down more than 1% against the U.S. dollar after the trade data. The two currencies hit their strongest levels in months last week, when a rebound in oil prices lifted commodities-related assets.

In Australia, which counts China among its biggest trading partners, the Australian dollar was down 0.6% against the U.S. dollar at $0.7320. It is also down from as high as $0.7382 Monday, which marked its strongest level since August.

Meanwhile, Brent crude oil prices were up over 1% at $50.52 a barrel in Asia trade, recovering after falling more than 5% overnight.

Prices in the U.S. fell after the Organization of the Petroleum Exporting Countries reported that its output rose to a more-than-three-year high last month, pointing to supply glut.

Speculation is growing that the U.S. Federal Reserve could maintain its easy policy stance given risks posed by weaker overseas economies. Federal Reserve Gov. Lael Brainard issued a call for caution about raising short-term interest rates. That has been a positive for global stocks in recent weeks, as low interest rates mean lower borrowing costs for companies.

The dollar edged lower against other currencies overnight, as investors discounted the possibility that the U.S. will raise interest rates in coming months. The Wall Street Journal Dollar Index, which gauges the U.S. currency against a basket of 16 currencies, was last at 87.31 compared with as low as 87.05 early morning Monday in the U.S.

U.S. stocks rose overnight. Health-care stocks pushed the Dow Jones Industrials higher and to its longest winning streak in almost a year.

Gold prices were down 0.6% at $1,157.70 a troy ounce. Prices are down from a more than $1,163 reached late Monday in Asia, marking the highest since July.

Investors also are looking to Chinese inflation data due for release on Wednesday, according to the National Bureau of Statistics of China.

WSJ