Asian Markets Retreat Despite China’s Strong Trade Data

Asian markets retreat after reaching highs, impacted by trade data and comments from U.S. Federal Reserve Chair Jerome Powell.

Global Markets

• Asian Stock Markets: The Nikkei down 1.31%, Shanghai Composite down 0.27%, Hang Seng down 1.08%, ASX up 0.39%.
• Commodities: Gold is at $2161.5 (0.14%), Silver is at $24.27 (-0.9%), Brent Oil is at $83.05 (0.06%), and WTI Oil is at $79.17 (0.96%).
• Rates: U.S. 10-year yield at 4.115, U.K. 10-year yield at 4.033, Germany 10-year yield at 2.326.

News & Data

• (USD) ADP Nonfarm Employment Change 140K vs 149K expected.
• (CAD) Overnight Rate 5.00% vs 5.00% expected.

Asian Markets Retreat Despite China’s Strong Trade Data

Markets Update

Japanese stock indexes retreated from record highs on Thursday, with the Nikkei 225 hitting a peak before sliding 1.2% and the Topix losing 0.24%. Meanwhile, the Taiwan-weighted index surged over 1%, and Australia’s S&P/ASX 200 rose by 0.39%, reaching new highs. The pullback followed better-than-expected trade data from China, which saw the CSI 300 index decline by 0.5%, while the Hang Seng index dipped by 0.46%. China’s dollar-denominated exports for the first two months of the year rose by 7.1% year on year, exceeding expectations.

In response to comments from U.S. Federal Reserve Chair Jerome Powell, Asian stocks rose as he reiterated a willingness to consider rate cuts without immediate action. Hong Kong-listed JD.com saw a remarkable 8% surge after reporting strong fourth-quarter earnings and unveiling a $3 billion share buyback plan. South Korea’s Kospi extended gains by 0.29%, while the Kosdaq dropped 0.8%.

In the U.S., all three major indexes rebounded after two days of decline, though Apple, Alphabet, and Disney did not join the rally. The S&P 500 added 0.51%, the Nasdaq Composite gained 0.58%, and the Dow Jones Industrial Average traded higher by 0.2%, weighed down by a more than 2% drop in Disney’s shares.

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