China shares up as currency fears ease

In dollar-denominated terms, China’s exports fell for the sixth consecutive month, by 1.4 percent from the same month in December, but the pace of fall decelerated from November’s 6.8 percent decline.

The Shanghai Composite Index was down 0.7 percent in early trade, while the CSI300 index was down 0.6 percent.

Chinese foreign trade data were better than expected, cheering up Asian markets, which rallied after the release, as well as European stocks.

In morning trade Wednesday, US benchmark West Texas Intermediate was up 1.4 percent and Brent gained 1.1 percent. Shares in Southeast Asia and New Zealand also were higher.

China surprised the market with better than expected export figures in December, lending support to stock prices and suggesting that the depreciation of the country’s currency is aiding the nation’s economy.

The data indicated that the Chinese economy may be stabilizing, easing fears over a China-led slowdown in global growth.

The People’s Bank of China kept the yuan reference rate, which restricts onshore moves to a maximum 2 percent on either side, little changed at 6.5630 a dollar on Wednesday.

Shanghai stocks have been on a rollercoaster ride, ending Thursday up nearly two percent after heavy early losses, as investors fret about slowing growth in the world’s second-largest economy and weakness in China’s yuan currency.

China’s central bank set the yuan at 6.5637 to the dollar, marking the sixth-straight session it has guided the currency roughly steady.

Crude oil imports in 2015 rose 8.8 percent to 336 million tonnes while that of iron ore climbed 2.2 percent to 953 million tonnes, the GAC reported. It has risen 2% year-to-date. Australia’s dollar rose 0.7 percent to 70.34 US cents, and advanced 1.2 percent to 83.19 yen. The Shanghai Composite yoyo’d in and out of negative territory and closed down 2.4 per cent at 2,949.60.

Sodexo confirmed its 2016 objectives after posting 9.6 percent growth in first-quarter consolidated revenues.

Analysts said trading volume, however, was continuing to wane, signalling that many investors were staying on the sidelines or putting their money elsewhere.

Crude prices on Tuesday fell briefly below the $30 per barrel line in NY for the first time since December 2003 but they have since picked up after a private report showed U.S. supplies fell last week.