Asia report: Markets mixed as China exports unexpectedly rise

Markets in Asia closed in a mixed state on Thursday, as investors digested fresh data from China that showed an unexpected rise in exports in April.

In Japan, the Nikkei 225 gained 0.28% to 19,674.77, as the yen weakened 0.41% against the dollar to last trade at JPY 106.56.

Automation specialist Fanuc was up 0.7%, while among the benchmark’s other major components, Uniqlo owner Fast Retailing was down 0.61% and technology giant SoftBank Group was 2.45% weaker.

The broader Topix index went the other way to the benchmark, falling 0.32% to close its session at 1,426.73.

On the mainland, the Shanghai Composite fell 0.23% to 2,871.52, and the smaller, technology-heavy Shenzhen Composite slipped 0.12% to 1,788.21.

In fresh data out of China, the country’s dollar-denominated exports were up 3.5% year-on-year in April, while imports dropped 14.2%.

That compared to economist expectations for a 15.7% decline in exports and an 11.2% drop in imports, according to a Reuters poll.

At the same time, the unofficial Caixin/Markit services purchasing managers’ index came in at 44.4 for April, marking the third month of contraction for the country’s services sector.

It was still an improvement from the 43 reading in March, however.

“This morning’s latest China trade numbers for April showed little evidence of a recovery in economic activity despite the lifting of lockdown back at the beginning of March,” said CMC Markets analyst Michael Hewson.

“Exports were better than expected, rising 3.5%, probably helped by the shipping of medical products like PPE as the rest of the world wrestled with the virus while in various states of lockdown.

“In worrying signs that internal demand remains weak imports slid much more than expected, falling sharply, by 14.2%, suggesting that while the economy was reopening activity was far from normal, with consumers behaving more cautiously.”

South Korea’s Kospi was broadly flat, losing just 0.008% to 1,928.61, while the Hang Seng Index in Hong Kong slid 0.65% to 23,980.63.

The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics down 0.81, while chipmaker SK Hynix was flat.

Oil prices were higher as the region went to bed, with Brent crude last up 5.62% at $31.39 per barrel, and West Texas Intermediate adding 8.38% to $26.

In Australia, the S&P/ASX 200 closed down 0.38% at the end of the trading day, at 5,364.20.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.72% at 10,649.23, led higher by Tourism Holdings, which surged 11% as details about the country’s next deescalation of the coronavirus lockdown were released.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.99% at AUD 1.5471, and the Kiwi advancing 0.73% to NZD 1.6517.