Investing.com - Asian stock markets turned lower during late Asian trade on Tuesday, erasing earlier gains after disappointing Chinese trade data prompted investors to shun riskier assets.
Losses were limited amid growing expectations Beijing will introduce further stimulus measures to boost its ailing economy.
During late Asian trade, Hong Kong's Hang Seng Index eased down 0.1%, Australia’s ASX/200 Index dropped 0.5%, while Japan’s Nikkei 225 Index dipped 0.4%.
Markets across the region reacted badly to data showing Chinese exports and imports in June slowed from the previous month, as weakening global demand weighed.
In a report, the Customs General Administration of China said the nation’s trade surplus widened to USD31.7 billion in June from USD18.7 billion in the previous month.
The report said that exports rose by 11.3% in June from a year earlier, slowing from 15.3% in May.
Imports grew by 6.3%, significantly below expectations of 11.0% and slowing sharply from 12.7% in the previous month.
Normally a widening trade surplus is considered a good thing, but June’s result appeared more related to a weakness in imports, fuelling concerns over a slowdown in the world’s second largest economy.
An unexpected rate cut from China last week stocked fears of a deeper-than-expected slowdown in the world’s second largest economy.
Investors were looking ahead to Chinese economic data due out later this week, including second quarter growth figures, to gauge whether China is a heading towards a hard or a soft landing.
A deeper slowdown in China would impair a global expansion that is already faltering because of the ongoing debt crisis in the euro zone.
In the euro zone, a meeting of finance ministers from the region on Monday offered few signs of progress in tackling the region’s debt crisis.
Euro zone ministers agreed to push Spain’s deadline to reach its deficit reduction targets back to 2014 in exchange for further budget savings and set the parameters of an aid package for Madrid's ailing banks.
The ministers made no apparent progress, however, on activating the bloc's rescue funds to intervene in bond markets and bring down Spain and Italy’s spiraling borrowing costs.
Spain’s 10-year government bonds were hovering at 7.03% earlier Tuesday, above the 7% threshold which is widely seen as unsustainable.
Shares in Hong Kong were set to close modestly lower, as the market found support amid growing expectations for further easing measures from China.
Raw material producers came under pressure, with Jiangxi Copper Company falling 1% and Zijin Mining Group down 1.5%.
Meanwhile, in Tokyo, exporters were dragged lower amid growing concerns over the global economic outlook.
Shares in exporters with high exposure to China were lower, with heavy machinery maker Komatsu slumping 3.45%, rival Sumitomo Heavy Industries retreated 2.3%, while shares in industrial robot maker Fanuc lost 1.5%.
The Nikkei found support amid speculation of additional easing by the Bank of Japan. Market participants are hoping that the central bank could increase its asset purchases after it concludes a policy meeting on Thursday.
Elsewhere, shares in Australia were dragged lower by losses in global miners, amid fears over the global outlook.
BHP Billiton and Rio Tinto shares fell 0.95% and 1.05% respectively, while gold miner Newcrest Mining lost 3.4% and copper miner PanAust tumbled 4.9%.
Looking ahead, the outlook for European stock markets downbeat, as sustained concerns over the debt crisis in the euro zone and global economic growth continued to weigh on market sentiment.
The EURO STOXX 50 futures pointed to a loss of 0.3% at the open, France’s CAC 40 futures declined 0.45%, London’s FTSE 100 futures dipped 0.25%, while Germany's DAX futures pointed to a loss of 0.4% at the open.
Later in the day, France and Italy were to produce official data on industrial production, while euro zone finance ministers were to hold a second day of talks in Brussels.
Losses were limited amid growing expectations Beijing will introduce further stimulus measures to boost its ailing economy.
During late Asian trade, Hong Kong's Hang Seng Index eased down 0.1%, Australia’s ASX/200 Index dropped 0.5%, while Japan’s Nikkei 225 Index dipped 0.4%.
Markets across the region reacted badly to data showing Chinese exports and imports in June slowed from the previous month, as weakening global demand weighed.
In a report, the Customs General Administration of China said the nation’s trade surplus widened to USD31.7 billion in June from USD18.7 billion in the previous month.
The report said that exports rose by 11.3% in June from a year earlier, slowing from 15.3% in May.
Imports grew by 6.3%, significantly below expectations of 11.0% and slowing sharply from 12.7% in the previous month.
Normally a widening trade surplus is considered a good thing, but June’s result appeared more related to a weakness in imports, fuelling concerns over a slowdown in the world’s second largest economy.
An unexpected rate cut from China last week stocked fears of a deeper-than-expected slowdown in the world’s second largest economy.
Investors were looking ahead to Chinese economic data due out later this week, including second quarter growth figures, to gauge whether China is a heading towards a hard or a soft landing.
A deeper slowdown in China would impair a global expansion that is already faltering because of the ongoing debt crisis in the euro zone.
In the euro zone, a meeting of finance ministers from the region on Monday offered few signs of progress in tackling the region’s debt crisis.
Euro zone ministers agreed to push Spain’s deadline to reach its deficit reduction targets back to 2014 in exchange for further budget savings and set the parameters of an aid package for Madrid's ailing banks.
The ministers made no apparent progress, however, on activating the bloc's rescue funds to intervene in bond markets and bring down Spain and Italy’s spiraling borrowing costs.
Spain’s 10-year government bonds were hovering at 7.03% earlier Tuesday, above the 7% threshold which is widely seen as unsustainable.
Shares in Hong Kong were set to close modestly lower, as the market found support amid growing expectations for further easing measures from China.
Raw material producers came under pressure, with Jiangxi Copper Company falling 1% and Zijin Mining Group down 1.5%.
Meanwhile, in Tokyo, exporters were dragged lower amid growing concerns over the global economic outlook.
Shares in exporters with high exposure to China were lower, with heavy machinery maker Komatsu slumping 3.45%, rival Sumitomo Heavy Industries retreated 2.3%, while shares in industrial robot maker Fanuc lost 1.5%.
The Nikkei found support amid speculation of additional easing by the Bank of Japan. Market participants are hoping that the central bank could increase its asset purchases after it concludes a policy meeting on Thursday.
Elsewhere, shares in Australia were dragged lower by losses in global miners, amid fears over the global outlook.
BHP Billiton and Rio Tinto shares fell 0.95% and 1.05% respectively, while gold miner Newcrest Mining lost 3.4% and copper miner PanAust tumbled 4.9%.
Looking ahead, the outlook for European stock markets downbeat, as sustained concerns over the debt crisis in the euro zone and global economic growth continued to weigh on market sentiment.
The EURO STOXX 50 futures pointed to a loss of 0.3% at the open, France’s CAC 40 futures declined 0.45%, London’s FTSE 100 futures dipped 0.25%, while Germany's DAX futures pointed to a loss of 0.4% at the open.
Later in the day, France and Italy were to produce official data on industrial production, while euro zone finance ministers were to hold a second day of talks in Brussels.