China December exports fall 1.4 pct, less than forecast

CHINA DATA: China’s exports rose 2.3 per cent in December from a year earlier in yuan terms, reversing a 3.7 per cent drop in November, the Finance Ministry reported Wednesday.

China’s central bank held the line on its yuan for a fourth straight session on Wednesday while putting the squeeze on offshore sellers of the currency, dampening fears of a sustained depreciation – at least for now.

To withstand global volatility, Africa needs to develop its domestic capacity by increasing manufacturing and growing intra-African trade, U.S.-based World Bank said.

Japan’s Nikkei plummeted as much as 4 percent Thursday morning, while the Hang Seng in Hong Kong fell as much as 2.1 percent.

More stability in China would also leave the way clearer for the U.S. Federal Reserve to raise interest rates this year and the brighter tone drove the dollar about half a percent higher to 118.16 yen and up a third of cent against the euro. But overall trade balance got boost due to weakness in imports, which have declined by -14.1% in December from a year ago.

China stocks skidded on Thursday, with the Shanghai index looking set to test lows hit during last summer’s crash as fresh market-friendly rhetoric from the government failed to calm panicking investors.

Last year, trade with the United States, the second-biggest trade partner, rose to 3.47 trillion yuan in 2015 from 3.41 trillion yuan the previous year.

Xinhua, the official news agency, reported that exports fell 1.8% year on year to 元14.14tn yuan in 2015, while imports declined 13.2% (partly reflecting dips in commodity prices) to 元10.45tn yuan in 2015, according to the General Administration of Customs data.

The Shanghai Stock Exchange Composite Index lost 2.4% to 2,950 and the Shenzhen Stock Exchange Composite Index tumbled 3.5% to 1,791. The yuan fell 1.5 per cent last month, the most since August, when a surprise devaluation was announced. West Texas Intermediate oil rose 3.7pc to $31.56 a barrel, while Brent crude rose 3.6pc to $31.92, amid speculation that concern over China’s economy has been overblown.

Australia’s dollar, often a proxy for China on major currency markets, gained 0.6 percent.

Analysts said trading volume continued to wane, suggesting many investors were staying on the sidelines or putting their money elsewhere.