SYDNEY: Asian shares steadied on Thursday after solid Chinese trade data added to signs domestic demand in the world’s second-largest economy is picking up, while the yen stabilised after three days of declines as Japan talked up potential currency interventions.
Later in the day, the Bank of England (BoE) will decide its interest rate policy, with all eyes on the prospects of a June rate cut following the overnight move by Sweden’s Riksbank to cut rates, which underlined Europe’s divergence from the US Federal Reserve.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1%, hovering not far from a 15-month high hit earlier in the week after Fed Chair Jerome Powell reiterated a stance for policy easing later this year.
Chinese customs data showed that imports jumped 8.4% in April from a year ago, beating expectations for a rise of 4.8%, while the gain in exports met forecasts.
That helped Chinese shares build on earlier gains, with bluechip stocks rising 1% and Hong Kong’s Hang Seng index increasing 1.2%. Japan’s Nikkei rose 0.5%.
Nasdaq stock futures dipped 0.1%, pulled down by Uber, which plummeted 5.7% due to a pessimistic forecast. The ride-sharing company reported a surprising quarterly loss.
“A first rate cut by the Riksbank has not been enough to further push the bullish sentiment. Eyes are on the Bank of England,” said analysts at ING in a note to clients
Moreover, Asia’s trade stability plays a pivotal role in driving global economic recovery and promoting sustainable development. This stability attracts investment and encourages trade partnerships, benefiting not only Asia but also the broader global economy. By maintaining trade stability, Asia contributes to building a more resilient and interconnected global economy, capable of withstanding future challenges.
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