Shares in Asia came near to their peaks for the year on Wednesday, while global stocks logged solid gains after unexpected positive Chinese trade data gave hope that the world’s second largest country was finally recovering, underpinning both risk sentiment and commodity prices.
China reported exports surged 11.5 percent in March compared to last year’s, which is the first climb since June and well above market expectations.
It was a big improvement on February, even though data at this time of the year weakened due to the Lunar New Year holidays.
According to a market economist, “The latest data certainly suggests that activity levels are lifting and no doubt will give investors a degree of optimism, particularly in light of the recent surge in commodity prices.”
The Shanghai Composite Index gained 1.4 percent to 3,066.64, while Japan’s Nikkei 225 Stock Average climbed 2.8 percent for its largest daily climb in six weeks, which ended with 16,381.22. Hong Kong’s Hang Seng added 3.2 percent to 21,158.71.
Morgan Stanley Capital International’s broadest index of Asia Pacific shares outside Japan jumped 1.6 percent and came within a whisker of breaching its high point for the year so far.
Financial spread betters anticipated opening gains of between 0.6 and 0.8 percent for the Financial Times Stock Exchange 100 and CAC 40.
On the other hand, Britain’s Financial Times Stock Exchange 100 soared 88.70 points or 1.4 percent to 6,331.09, which is its highest level in more than four months. Financial companies, mining firms, and energy stocks increased more than 60 points to the index’s rally.
German DAX 30 also rose 2.0 percent to 9,952.27, while France’s CAC 40 added 2.0 percent to 4,434.51 in early trading.
Meanwhile, the Dow Jones Industrial Average futures inched up 0.4 percent to 17,708, while Standard & Poor’s 500 futures also surged 0.4 percent to 2,064.60.
As stated by a market analyst, “The bulls are firmly back in control of sentiment at present, but the risk of a reversal remains a threat. Expect Europe to feed off the strong Asian session, and while S&P futures have pushed up modestly, our Europe market calls have warmed in appreciation.”