Shares were mixed in Asia on Tuesday as investors were boosted by strong growth in trade with China in September.
The Wall Street rally, led mainly by technology companies such as Apple and Amazon, has faded amid worries about economic stimulus in the United States and the resurgence of coronavirus cases in many countries.
But the publication of stronger trade data in Beijing helped Tokyo recover from early losses. Shanghai refused. The Hong Kong market was closed for a typhoon.
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Chinese exports rose 9.9 percent a year earlier to $ 239.8 billion in September, while imports rose 1
Chinese exporters have benefited from China’s relatively early opening from a pandemic and strong global demand for masks and medical supplies. They take market share from foreign competitors who have difficulty controlling diseases.
“Exports continue to grow well, most likely due to the recent strength of retail sales among China’s main trading partners. And the jump in imports suggests that domestic investment costs remain stable, “said Julian Evans-Pritchard of Capital Economics in a report.
Traders watched the Chinese currency after the central bank lifted a requirement for currency traders to post cash deposits, paving the way for more negative speculation about the yuan in the country, which could help curb its appreciation.
The change took effect on Monday and removes the 2018 requirement for a 20% deposit in yuan transactions to discourage speculators.
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The recovery of the world’s second-largest economy is rarely a bright spot as investors wait to see if the US Congress will be able to provide additional economic aid to Americans and businesses struggling with the coronavirus pandemic. With the accumulation of cases in the United States, Europe and many other countries, it is gaining momentum, and in some regions the risks of further disruption to trade, business and other day-to-day activities are increasing.
The Nikkei 225 index in Tokyo rose 0.2% to 23,601.78, while the Shanghai Composite index fell 0.1% to 3,355.72. Kospi from South Korea remained almost unchanged at 2,402.91. The shares were mixed in Southeast Asia.
The Indian Sensex rose 0.2% to 40,681.15.
The Australian S & P / ASX 200 rose 1% to 6,195.70, driven by earnings on bank stocks. Strong Chinese demand is good news for Australian exporters, although unconfirmed reports that Beijing is slowing down or halting Australian coal imports raise concerns about the economic impact of political friction between the two countries.
Wall Street increased its gains on Monday from last week’s rally, the best in the market for the past three months, as investors seem to have given up on recent signs that Democrats and Republicans remain far apart on more economic aid.
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The S&P 500 rose 1.6% to 3,534.22, with shares of Big Tech, including Apple and Microsoft, accounting for much of the gains. The benchmark is already within 1.4% of its record highs for September 2.
Investors can bet that Congress will present a more generous bill to help after the Nov. 3 election.
Analysts predict that the upcoming earnings season will show another quarter lower profits. Profits on the S&P 500 are expected to fall 20.5% from a year earlier, according to FactSet, better than the 31.6% decline in the spring quarter.
In terms of energy deals, crude oil in the United States earned 37 cents to $ 39.80 a barrel in e-commerce on the New York Mercantile Exchange. On Monday, it lost $ 1.17 to $ 39.43 per barrel.
Raw Brent also added 37 cents to $ 42.09 a barrel.
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The US dollar strengthened to 105.37 Japanese yen from 105.34 yen. The euro weakened to $ 1.1799 from $ 1.1896.
AP Business Writer Joe MacDonald in Beijing contributed.