Asian shares rallied for a second session on Friday as economic news from China and Japan beat all expectations while bitcoin, the market&#39;s new crypto-star, tumbled more than 10 percent after a meteoric ascent in recent weeks.

Sterling briefly rose after the head of the European Commission Jean-Claude Juncker said the EU and the UK have made a breakthrough in the negotiations on how to run their post-Brexit land border and that the two sides will move to the next step of negotiation.

Beijing reported exports surged 12.3 percent in November from a year earlier, more than double the forecast, while imports climbed almost 18 percent.

Iron ore and copper imports enjoyed a stellar rebound, which could help stem a recent pullback in commodity prices.

Japan&#39;s Nikkei led the way as the yen eased on the dollar, rising 1.1 percent on top of Thursday&#39;s 1.45 percent bounce to be almost back where it started the week.

Revised data showed Japan&#39;s economy grew twice as fast as first thought as business spending jumped.

European stock futures were up, with euro Stoxx 50 futures rising 0.6 percent in early trade.

Australian stocks put on 0.3 percent while MSCI&#39;s broadest index of Asia-Pacific shares outside Japan rose 0.7 percent.

Bidders were encouraged by a steadier performance on Wall Street, where the Dow rose 0.29 percent. The S&amp;P 500 gained 0.29 percent and the Nasdaq 0.54 percent.

Still to come as US&nbsp;nonfarm payrolls, with investors looking for 200,000 new jobs in November and much talk wages might show some welcome strength.

Sterling which briefly rose as high as $1.3521 on the Brexit accord, two cents above its low of $1.3320 on Thursday, last traded at $1.3461, down 0.1 percent for the day.

It was one of only a few currencies to gain on the US&nbsp;dollar, which was otherwise broadly firmer.

The US&nbsp;currency cleared 113.00 yen to reach 113.34, while the euro touched a two-week low at $1.1763. Against a basket of currencies, the dollar held firm at 93.848.

Digital Darling

Bitcoin crested above $16,666 on the Bitstamp exchange having doubled in value in just two weeks.

But within a few hours, it dropped almost 15 percent from that level to as low as 14,239 in volatile trade, intensifying the debate about whether it is a bubble about to burst. It last stood at $15,641, down 6 percent on the day.

The largest US&nbsp;cryptocurrency exchange has been struggling to manage record traffic, with an imminent launch of the first bitcoin futures contract further fuelling investor interest.

Some, however, warned the coming of futures might prove to be the downfall of the digital darling.

&quot;Dragging bitcoin into the futures market poses a risk of big players opening doors to short-selling hell,&quot; said Naeem Aslam, the chief market analyst at Think Markets UK.

&quot;Futures markets make it possible to short in decent size with a lot of liquidity, thus affecting the price discovery in the underlying asset market.&quot;

The spectacular rise of the cryptocurrency has stolen some thunder from gold bulls, providing an asset that is also seen as a hedge against inflation and government interference.

Gold steadied at $1,258.10, having finally breached its recent tight trading range to hit a four-month trough at $1,245.60.

&quot;Demand for gold relative to supply has had centuries to reach an equilibrium,&quot; noted Alan Ruskin, a macro strategist at Deutsche Bank. &quot;Bitcoin global demand is still finding its place relative to constrained/inelastic supply.&quot;

Oil prices had gone the other way as a threatened strike by oil workers in Nigeria forced a bout of short covering.

Brent futures were barely changed at $62.19 a barrel, having climbed 98 cents overnight. US&nbsp;crude was off 4 cents at $56.65. [O/R]

Asian shares rallied for a second session on Friday as economic news from China and Japan beat all expectations while bitcoin, the market's new crypto-star, tumbled more than 10 percent after a meteoric ascent in recent weeks

Asian shares rallied for a second session on Friday as economic news from China and Japan beat all expectations while bitcoin, the market's new crypto-star, tumbled more than 10 percent after a meteoric ascent in recent weeks. Sterling briefly rose after the head of the European Commission Jean-Claude Juncker said the EU and the UK have made a breakthrough in the negotiations on how to run their post-Brexit land border and that the two sides will move to the next step of negotiation. Beijing reported exports surged 12.3 percent in November from a year earlier, more than double the forecast, while imports climbed almost 18 percent. Iron ore and copper imports enjoyed a stellar rebound, which could help stem a recent pullback in commodity prices. Japan's Nikkei led the way as the yen eased on the dollar, rising 1.1 percent on top of Thursday's 1.45 percent bounce to be almost back where it started the week. Revised data showed Japan's economy grew twice as fast as first thought as business spending jumped. European stock futures were up, with euro Stoxx 50 futures rising 0.6 percent in early trade. Australian stocks put on 0.3 percent while MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.7 percent. Bidders were encouraged by a steadier performance on Wall Street, where the Dow rose 0.29 percent. The S&P 500 gained 0.29 percent and the Nasdaq 0.54 percent. Still to come as US nonfarm payrolls, with investors looking for 200,000 new jobs in November and much talk wages might show some welcome strength. Sterling which briefly rose as high as $1.3521 on the Brexit accord, two cents above its low of $1.3320 on Thursday, last traded at $1.3461, down 0.1 percent for the day. It was one of only a few currencies to gain on the US dollar, which was otherwise broadly firmer. The US currency cleared 113.00 yen to reach 113.34, while the euro touched a two-week low at $1.1763. Against a basket of currencies, the dollar held firm at 93.848. Digital Darling Bitcoin crested above $16,666 on the Bitstamp exchange having doubled in value in just two weeks. But within a few hours, it dropped almost 15 percent from that level to as low as 14,239 in volatile trade, intensifying the debate about whether it is a bubble about to burst. It last stood at $15,641, down 6 percent on the day. The largest US cryptocurrency exchange has been struggling to manage record traffic, with an imminent launch of the first bitcoin futures contract further fuelling investor interest. Some, however, warned the coming of futures might prove to be the downfall of the digital darling. "Dragging bitcoin into the futures market poses a risk of big players opening doors to short-selling hell," said Naeem Aslam, the chief market analyst at Think Markets UK. "Futures markets make it possible to short in decent size with a lot of liquidity, thus affecting the price discovery in the underlying asset market." The spectacular rise of the cryptocurrency has stolen some thunder from gold bulls, providing an asset that is also seen as a hedge against inflation and government interference. Gold steadied at $1,258.10, having finally breached its recent tight trading range to hit a four-month trough at $1,245.60. "Demand for gold relative to supply has had centuries to reach an equilibrium," noted Alan Ruskin, a macro strategist at Deutsche Bank. "Bitcoin global demand is still finding its place relative to constrained/inelastic supply." Oil prices had gone the other way as a threatened strike by oil workers in Nigeria forced a bout of short covering. Brent futures were barely changed at $62.19 a barrel, having climbed 98 cents overnight. US crude was off 4 cents at $56.65. [O/R]

Asia cheers China trade boost, bitcoin comes off heady heights

Chinese President Xi Jinping wants to rewrite world trade rules and cast himself as a champion of globalisation as he capitalises on a US retreat into &quot;America First&quot; policies, analysts say.

But not everyone is buying the rhetoric.

Xi&#39;s plan was on display this week at an international summit in Beijing to promote his signature foreign policy, the One Belt, One Road initiative that aims to revive ancient land and sea trade routes.

The meeting gave Xi a spotlight to raise his standing abroad and at home, where he faces a crucial Communist Party congress later this year.

World leaders, including Russian President Vladimir Putin, heaped praise on the idea which Xi boasted would be &quot;a project of the century&quot; and &quot;unleash new driving forces for global economic growth&quot;.&nbsp;

Xi emerged as an unlikely capitalist hero at the World Economic Forum in Davos in January when he extolled open trade and denounced protectionism.

He now stands in stark contrast to US President Donald Trump whose pursuit of &quot;America First&quot; policies on trade and foreign relations has given China the chance to reshape the global and political landscape in its favour.

&quot;He (Xi) is very anxious to move as early as possible to take advantage of the vacuum created by Donald Trump and show that China has the capacity to be a rule maker,&quot; China political analyst Willy Lam said.

But Xi&#39;s cherished Silk Road plan has raised concerns that he is seeking to expand China&#39;s economic and political ambitions abroad rather than open up his own country to further trade and investment.

&quot;Hopefully (One Belt, One Road) is not a one-way street but two-way,&quot; European Union Chamber of Commerce in China President Joerg Wuttke told reporters recently.&nbsp;

&quot;I hope China is not just reaching out to the world but actually embracing the world and opening up to foreign trade.&quot;

Despite claims that it welcomes foreign investment, China has long been criticised for erecting barriers in a wide range of sectors from automotives to finance, while also subsidising its own companies.&nbsp;

It ranked 84th globally, behind Saudi Arabia and Ukraine, in the World Bank&#39;s ease of doing business index for 2016, and second to last in an OECD report on the restrictiveness towards foreign investment.&nbsp;

Financial risks

Many doubt the motives behind its latest plan.

&quot;I don&#39;t think many people are buying the spin that this is all in the name of free trade and global prosperity,&quot; said Andrew Gilholm from global risk consultancy Control Risks.

&quot;I think a lot of countries are going along with it because that&#39;s how much significance political leaders attach to trying to benefit from aligning with China&#39;s economic priorities.&quot;

The China-bankrolled project involves a massive network of ports, railways, roads and industrial parks spanning some 65 countries across Asia, Africa and Europe.&nbsp;

Xi has pledged an extra $124 billion for the plan, on top of the $890 billion already earmarked by the China Development Bank for some 900 projects.&nbsp;

The huge spending plan comes as China looks for ways to spur economic growth, which has slowed in recent years as the country transitions away from a debt-fuelled investment-driven model to one more reliant on consumer spending.&nbsp;

But many of the countries involved in the initiative, representing 60 per cent of the world population and around a third of global gross domestic product, have poor records on corporate and political governance and there are fears China could run into trouble.&nbsp;

&quot;If projects are not commercially viable this becomes a very expensive commitment at a time when domestic financial strain is rising,&quot; said Gilholm.&nbsp;

PR coup

&nbsp;But Lam said problems would only start to emerge in the coming years, giving Xi time to use the Silk Road plan to burnish his credentials as a global statesman at home and abroad.&nbsp;

The summit comes ahead of a crucial Communist Party congress later this year.

Regarded as the most powerful Chinese leader in a generation, Xi will secure a second five-year term at the congress and will have the opportunity to promote his favoured allies to the country&#39;s ultimate decision-making body.

Enthusiastic state-media coverage of the two-day Silk Road summit, which was attended by leaders from nearly 30 countries, showered Xi with the sort of attention he craves.&nbsp;

&quot;I think the optics worked out well for him,&quot; said Gilholm.

&quot;But obviously there&#39;s a heck of a lot more to it than just holding an event and having people make nice speeches. It gets harder from now onwards.&quot;

(AFP)

Xi Jinping's cherished Silk Road plan has raised concerns that he is seeking to expand China's economic and political ambitions abroad rather than open up his own country to further trade and investment

Chinese President Xi Jinping wants to rewrite world trade rules and cast himself as a champion of globalisation as he capitalises on a US retreat into "America First" policies, analysts say. But not everyone is buying the rhetoric. Xi's plan was on display this week at an international summit in Beijing to promote his signature foreign policy, the One Belt, One Road initiative that aims to revive ancient land and sea trade routes. The meeting gave Xi a spotlight to raise his standing abroad and at home, where he faces a crucial Communist Party congress later this year. World leaders, including Russian President Vladimir Putin, heaped praise on the idea which Xi boasted would be "a project of the century" and "unleash new driving forces for global economic growth". Xi emerged as an unlikely capitalist hero at the World Economic Forum in Davos in January when he extolled open trade and denounced protectionism. He now stands in stark contrast to US President Donald Trump whose pursuit of "America First" policies on trade and foreign relations has given China the chance to reshape the global and political landscape in its favour. "He (Xi) is very anxious to move as early as possible to take advantage of the vacuum created by Donald Trump and show that China has the capacity to be a rule maker," China political analyst Willy Lam said. But Xi's cherished Silk Road plan has raised concerns that he is seeking to expand China's economic and political ambitions abroad rather than open up his own country to further trade and investment. "Hopefully (One Belt, One Road) is not a one-way street but two-way," European Union Chamber of Commerce in China President Joerg Wuttke told reporters recently. "I hope China is not just reaching out to the world but actually embracing the world and opening up to foreign trade." Despite claims that it welcomes foreign investment, China has long been criticised for erecting barriers in a wide range of sectors from automotives to finance, while also subsidising its own companies. It ranked 84th globally, behind Saudi Arabia and Ukraine, in the World Bank's ease of doing business index for 2016, and second to last in an OECD report on the restrictiveness towards foreign investment. Financial risks Many doubt the motives behind its latest plan. "I don't think many people are buying the spin that this is all in the name of free trade and global prosperity," said Andrew Gilholm from global risk consultancy Control Risks. "I think a lot of countries are going along with it because that's how much significance political leaders attach to trying to benefit from aligning with China's economic priorities." The China-bankrolled project involves a massive network of ports, railways, roads and industrial parks spanning some 65 countries across Asia, Africa and Europe. Xi has pledged an extra $124 billion for the plan, on top of the $890 billion already earmarked by the China Development Bank for some 900 projects. The huge spending plan comes as China looks for ways to spur economic growth, which has slowed in recent years as the country transitions away from a debt-fuelled investment-driven model to one more reliant on consumer spending. But many of the countries involved in the initiative, representing 60 per cent of the world population and around a third of global gross domestic product, have poor records on corporate and political governance and there are fears China could run into trouble. "If projects are not commercially viable this becomes a very expensive commitment at a time when domestic financial strain is rising," said Gilholm. PR coup But Lam said problems would only start to emerge in the coming years, giving Xi time to use the Silk Road plan to burnish his credentials as a global statesman at home and abroad. The summit comes ahead of a crucial Communist Party congress later this year. Regarded as the most powerful Chinese leader in a generation, Xi will secure a second five-year term at the congress and will have the opportunity to promote his favoured allies to the country's ultimate decision-making body. Enthusiastic state-media coverage of the two-day Silk Road summit, which was attended by leaders from nearly 30 countries, showered Xi with the sort of attention he craves. "I think the optics worked out well for him," said Gilholm. "But obviously there's a heck of a lot more to it than just holding an event and having people make nice speeches. It gets harder from now onwards." (AFP)

China's Xi seeks to rewrite global trade rules as US retreats

China&#39;s January exports easily exceeded analysts&#39; expectations, rising 7.9 per cent from a year earlier, while imports rose by 16.7 per cent, also topping forecasts, preliminary data showed on Friday.

That left the country with a trade surplus of $51.35 billion for the month, the General Administration of Customs said.

But China watchers caution that trends in January and February can be distorted by the long Lunar New Year holidays, with business slowing down weeks ahead of time and many firms scaling back operations or closing. The holiday fell on January 28 this year, 11 days earlier than last year.

Customs is due to release the final data for trade on February 23.

Analysts polled by Reuters had expected January shipments from the world&#39;s largest exporter to have risen 3.3 per cent, after a dismal 2016 that saw exports slump 7.7 per cent as China lagged an export rebound enjoyed by some of its North Asian neighbours.

Imports had been forecast to rise 10.0 per cent, accelerating from 3.1 per cent growth in December.

Analysts were expecting China&#39;s trade surplus to have risen to $47.90 billion in January, versus December&#39;s $40.71 billion, with growing attention on its large trade surplus with the United States as new US&nbsp;President Donald Trump ramps up his protectionist rhetoric.

(Reuters)

Imports, also topping forecasts, rose by 16.7 per cent. That left the country with a trade surplus of $51.35 billion for the month

China's January exports easily exceeded analysts' expectations, rising 7.9 per cent from a year earlier, while imports rose by 16.7 per cent, also topping forecasts, preliminary data showed on Friday. That left the country with a trade surplus of $51.35 billion for the month, the General Administration of Customs said. But China watchers caution that trends in January and February can be distorted by the long Lunar New Year holidays, with business slowing down weeks ahead of time and many firms scaling back operations or closing. The holiday fell on January 28 this year, 11 days earlier than last year. Customs is due to release the final data for trade on February 23. Analysts polled by Reuters had expected January shipments from the world's largest exporter to have risen 3.3 per cent, after a dismal 2016 that saw exports slump 7.7 per cent as China lagged an export rebound enjoyed by some of its North Asian neighbours. Imports had been forecast to rise 10.0 per cent, accelerating from 3.1 per cent growth in December. Analysts were expecting China's trade surplus to have risen to $47.90 billion in January, versus December's $40.71 billion, with growing attention on its large trade surplus with the United States as new US President Donald Trump ramps up his protectionist rhetoric. (Reuters)

China January exports rise 7.9%, beating forecasts

Asian shares rallied to an 18-month peak on Friday, as investors cheered upbeat Chinese trade data and strong gains on Wall Street after US&nbsp;President Donald Trump promised to unveil a major tax announcement to lower the burden on businesses.

China&#39;s January exports rose 7.9 per cent from a year earlier, while imports jumped 16.7 per cent, beating expectations, preliminary data showed, getting the economy off to a strong start in 2017.

The increase &quot;is related to the global pick-up in growth in the US, Europe and also emerging economies,&quot; said Jianguang Shen, chief economist at Mizuho Securities in Hong Kong.

MSCI&#39;s broadest index of Asia-Pacific shares outside Japan was up 0.5 per cent to the highest level since July 2015&nbsp;and was on track to gain 1.5 for the week. The Shanghai Composite Index was up 0.4 per cent.

Japan&#39;s Nikkei stock index surged 2.3 per cent thanks to the tailwind from a weaker currency&nbsp;and was poised to added 2.2 per cent for the week.

&quot;Weaker yen combined with US&nbsp;stock price gains are fuelling an upward trend in the Tokyo market,&quot; said Hiroki Allen, chief representative of Superfund Japan.

Wall Street&#39;s three main indexes notched record highs on Thursday after President Donald Trump said he would make a major tax announcement in a few weeks, though he offered no details.

&quot;The market loves the idea of tax reform,&quot; Chris Weston, chief market strategist at IG in Melbourne, said in a note. &quot;It has corporate tax cuts in its sights and if Trump can push that along, with a more simplified personal tax regime the US&nbsp;and global equities will find buyers.&quot;

US&nbsp;economic data also underpinned the dollar. Initial jobless claims unexpectedly dropped last week to a nearly 43-year low, while inventories at wholesalers surged in December for a second straight month.

The dollar index, which tracks the greenback against a basket of six major currencies, was steady on the day at 100.64, on track to gain 0.8 per cent for the week.

The Australian dollar rode the trade data from the China, Australia&#39;s major export market. The Aussie rose 0.3 per cent to $0.7646, also supported by an optimistic view from the country&#39;s central bank, which suggested that further interest rate cuts were off the table.

The euro, under pressure from political concerns as the campaign for France&#39;s presidential election heated up, was 0.1 per cent higher at $1.0663. It was still down 1.1 per cent for the week.

Against its Japanese counterpart, the dollar gained 0.4 per cent to 113.66 yen, up 1 per cent for the week ahead of a meeting later on Friday between Trump and Japan&#39;s Prime Minister Shinzo Abe.

Abe will propose a new cabinet level framework for US-Japan talks on trade, security and macroeconomic issues, including currencies, a Japanese government official involved in planning the summit said.

Crude oil prices extended gains, with US&nbsp;prices bolstered by evidence that gasoline demand could strengthen in the world&#39;s biggest oil market.

US&nbsp;crude added 0.2 per cent to $53.09 a barrel. Brent crude rose 0.1 per cent to at $55.70.

(Reuters)

China's January exports rose 7.9 per cent from a year earlier, while imports jumped 16.7 per cent, beating expectations

Asian shares rallied to an 18-month peak on Friday, as investors cheered upbeat Chinese trade data and strong gains on Wall Street after US President Donald Trump promised to unveil a major tax announcement to lower the burden on businesses. China's January exports rose 7.9 per cent from a year earlier, while imports jumped 16.7 per cent, beating expectations, preliminary data showed, getting the economy off to a strong start in 2017. The increase "is related to the global pick-up in growth in the US, Europe and also emerging economies," said Jianguang Shen, chief economist at Mizuho Securities in Hong Kong. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.5 per cent to the highest level since July 2015 and was on track to gain 1.5 for the week. The Shanghai Composite Index was up 0.4 per cent. Japan's Nikkei stock index surged 2.3 per cent thanks to the tailwind from a weaker currency and was poised to added 2.2 per cent for the week. "Weaker yen combined with US stock price gains are fuelling an upward trend in the Tokyo market," said Hiroki Allen, chief representative of Superfund Japan. Wall Street's three main indexes notched record highs on Thursday after President Donald Trump said he would make a major tax announcement in a few weeks, though he offered no details. "The market loves the idea of tax reform," Chris Weston, chief market strategist at IG in Melbourne, said in a note. "It has corporate tax cuts in its sights and if Trump can push that along, with a more simplified personal tax regime the US and global equities will find buyers." US economic data also underpinned the dollar. Initial jobless claims unexpectedly dropped last week to a nearly 43-year low, while inventories at wholesalers surged in December for a second straight month. The dollar index, which tracks the greenback against a basket of six major currencies, was steady on the day at 100.64, on track to gain 0.8 per cent for the week. The Australian dollar rode the trade data from the China, Australia's major export market. The Aussie rose 0.3 per cent to $0.7646, also supported by an optimistic view from the country's central bank, which suggested that further interest rate cuts were off the table. The euro, under pressure from political concerns as the campaign for France's presidential election heated up, was 0.1 per cent higher at $1.0663. It was still down 1.1 per cent for the week. Against its Japanese counterpart, the dollar gained 0.4 per cent to 113.66 yen, up 1 per cent for the week ahead of a meeting later on Friday between Trump and Japan's Prime Minister Shinzo Abe. Abe will propose a new cabinet level framework for US-Japan talks on trade, security and macroeconomic issues, including currencies, a Japanese government official involved in planning the summit said. Crude oil prices extended gains, with US prices bolstered by evidence that gasoline demand could strengthen in the world's biggest oil market. US crude added 0.2 per cent to $53.09 a barrel. Brent crude rose 0.1 per cent to at $55.70. (Reuters)

Asian shares scale 1-1/2-year peak on China trade, Trump's tax cut talk

Chinese exports sank for a seventh consecutive month in October, data showed Tuesday, as weak global demand dealt a blow to the world&#39;s number two economy following recent signs of stability.

The result, which missed forecasts, comes as the country&#39;s export-oriented companies see their margins squeezed by rising labour costs and increasing competition from southeastern Asian countries, despite a falling yuan currency.&nbsp;

Overseas shipments fell 7.3 per cent year-on-year, while imports also dropped 1.4 per cent, with both coming in below expectations in a survey of economists by Bloomberg News.

China is the world&#39;s biggest trader in goods and its performance affects partners from Australia to Zambia, which have been battered as its expansion has slowed to levels not seen in a quarter of a century.

With exports totalling $178.2 billion and imports $129.1 billion the trade surplus dropped to $49.1 billion in October.&nbsp;

Customs earlier gave the figure in yuan terms, showing a 3.2 per cent drop in exports and a 3.2 per cent increase in imports on-year.&nbsp;

Analyst Julian Evans-Pritchard of Capital Economics said the outlook appeared challenging with &quot;global and domestic growth unlikely to accelerate much further&quot;.

&quot;The current pace of global growth is likely to be as good as it gets for the foreseeable future.&quot;

Though the yuan currency`s value has slid to a series of six-year lows against the greenback in recent weeks, making Chinese goods cheaper for trade partners, it has not been enough to lift exports into positive territory.

The yuan weakened further Tuesday after the People&#39;s Bank of China said the country&#39;s foreign exchange reserves dropped nearly $46 billion in October, their second-largest decline this year as capital outflows eat into the world`s largest stockpile.

While Tuesday&#39;s trade figures disappointed, analysts with ANZ said they suggested that external demand had &quot;not worsened significantly&quot; despite earlier data on factory activity that pointed to a larger decline.&nbsp;

Beijing is seeking to transition the economy away from being the world&#39;s factory floor for cheap goods to supplying the country&#39;s growing consumer needs.&nbsp;

&quot;Trade&#39;s contribution to China&#39;s economy is now diminishing as the economy increasingly depends on domestic demand,&quot; Zhu Qibing, chief macro economy analyst at BOCI International in Beijing told Bloomberg.&nbsp;

Authorities have set a growth target of 6.5 to 7 per cent for the year, which they are on track to meet thanks to loose credit, a red-hot real-estate sector, and fiscal stimulus spending on infrastructure.

Government figures last month showed growth was steady at 6.7 per cent in the third quarter, a sign of stabilisation after years of slowing.&nbsp;

Growth momentum should be relatively stable through the rest of the year, Zhao Yang of Nomura said in a note, while high home prices will limit the room for further policy easing.

The recently concluded Canton Fair, in the southern manufacturing hub of Guangzhou showed a pickup in export turnover over last year, CICC Macro analysts noted, a positive sign bolstered by recent

US economic data, though &quot;there are still uncertainties on the US&#39;&nbsp;trade policy after the presidential election&quot;.

Investors shrugged off the latest trade figures, with Chinese stocks closing higher Tuesday.

Zhang Yanbing, an analyst at Zheshang Securities, told AFP that market players ignored the weak data because &quot;all of them have their eyes fixed&quot; on the Trump-Clinton race.&nbsp;

(AFP)

The fall comes as the margins of the export-oriented companies are squeezed by rising labour costs and increasing competition

Chinese exports sank for a seventh consecutive month in October, data showed Tuesday, as weak global demand dealt a blow to the world's number two economy following recent signs of stability. The result, which missed forecasts, comes as the country's export-oriented companies see their margins squeezed by rising labour costs and increasing competition from southeastern Asian countries, despite a falling yuan currency. Overseas shipments fell 7.3 per cent year-on-year, while imports also dropped 1.4 per cent, with both coming in below expectations in a survey of economists by Bloomberg News. China is the world's biggest trader in goods and its performance affects partners from Australia to Zambia, which have been battered as its expansion has slowed to levels not seen in a quarter of a century. With exports totalling $178.2 billion and imports $129.1 billion the trade surplus dropped to $49.1 billion in October. Customs earlier gave the figure in yuan terms, showing a 3.2 per cent drop in exports and a 3.2 per cent increase in imports on-year. Analyst Julian Evans-Pritchard of Capital Economics said the outlook appeared challenging with "global and domestic growth unlikely to accelerate much further". "The current pace of global growth is likely to be as good as it gets for the foreseeable future." Though the yuan currency`s value has slid to a series of six-year lows against the greenback in recent weeks, making Chinese goods cheaper for trade partners, it has not been enough to lift exports into positive territory. The yuan weakened further Tuesday after the People's Bank of China said the country's foreign exchange reserves dropped nearly $46 billion in October, their second-largest decline this year as capital outflows eat into the world`s largest stockpile. While Tuesday's trade figures disappointed, analysts with ANZ said they suggested that external demand had "not worsened significantly" despite earlier data on factory activity that pointed to a larger decline. Beijing is seeking to transition the economy away from being the world's factory floor for cheap goods to supplying the country's growing consumer needs. "Trade's contribution to China's economy is now diminishing as the economy increasingly depends on domestic demand," Zhu Qibing, chief macro economy analyst at BOCI International in Beijing told Bloomberg. Authorities have set a growth target of 6.5 to 7 per cent for the year, which they are on track to meet thanks to loose credit, a red-hot real-estate sector, and fiscal stimulus spending on infrastructure. Government figures last month showed growth was steady at 6.7 per cent in the third quarter, a sign of stabilisation after years of slowing. Growth momentum should be relatively stable through the rest of the year, Zhao Yang of Nomura said in a note, while high home prices will limit the room for further policy easing. The recently concluded Canton Fair, in the southern manufacturing hub of Guangzhou showed a pickup in export turnover over last year, CICC Macro analysts noted, a positive sign bolstered by recent US economic data, though "there are still uncertainties on the US' trade policy after the presidential election". Investors shrugged off the latest trade figures, with Chinese stocks closing higher Tuesday. Zhang Yanbing, an analyst at Zheshang Securities, told AFP that market players ignored the weak data because "all of them have their eyes fixed" on the Trump-Clinton race. (AFP)

Chinese exports drop for 7th straight month in October

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Asia cheers China trade boost, bitcoin comes off heady heights

China's Xi seeks to rewrite global trade rules as US retreats

China January exports rise 7.9%, beating forecasts

Asian shares scale 1-1/2-year peak on China trade, Trump's tax cut talk

Chinese exports drop for 7th straight month in October