Weak Chinese trade data put pressure on Asian markets

08.12.2015

Today, Asian stock market indicators go down on data on reduction of Chinese exports and imports volumes in November, according to Bloomberg.

The composite index of stock markets in the Asia-Pacific region - MSCI Asia Pacific fell during trading by 1.2%.

Japan's Nikkei 225 fell 1%, China's Shanghai Composite also lost 1%, Hong Kong's Hang Seng fell 1.6%, the Australian S&P/ASX 200 dropped 0.9%, and South Korea's KOSPI fell 0.6%.

The volume of China's exports in November 2015 decreased the 5th month in a row. Reduction of imports is noted the 13th month in a row, which is a record period of falling.

China's General Administration of Customs said on Tuesday that the volume of exports declined in November by 6.8% in annual terms, after declining in October by 6.9%. Economists had forecasted a decline by 5.0%.

The volume of imports fell 8.7%, slightly better than the decline anticipation by 12.6%, after 18.8% collapse in October.

According to IG Asia Pte analyst in Singapore, Bernard Aw, generally, Chinese data point to continued weakness in world trade.

The continuing fall in oil prices is also negative for the markets, worsening the prospects of economic recovery in Europe and the United States.

At the end of Monday trading, Brent oil prices fell 5.28% and WTI by 5.8%.

"The fall in oil prices deserves more attention - said Bernard Aw. – the reduction of Asian stock markets on Monday is mainly reflecting a drop in oil prices and mining companies shares."

Shares of Japanese oil company Inpex fell 5.2%, shares JX Holdings refiner dropped 3.1%, those of JGC Corp. - by 5.9%, and Sumitomo Metal Mining shares fell 2.8%.

The share costs of PetroChina dropped by 1.8%, Yanzhou Coal Mining shares fell 2.8%, and Yunnan Copper decreased by 3.1%.

The drop in prices shares of commodity companies was compensated by positive effect on the market from strong statistical data on the Japanese economy, which managed to avoid a recession in the 3rd quarter.

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