Japanese Yen Traded Down, China Exports Declined 8.8%

Arjun Pandit
07 Sep, 2023
Mumbai

Market indexes in Asia traded down after the U.S. Treasury yields advanced and on going property woes in China. 

The yen traded above 147 against the U.S. dollar for the second day in a row after the short term U.S. Treasury yields advanced following the worries of a rebound in inflation. 

A private survey showed that prices are still accelerating in the service sector in August and the recent rebound in crude oil prices fed the fears of a rebound in overall inflation. 

The widening yield gap between the U.S. Treasury bonds and the Japanese government bonds dragged the market indexes lower, halting the market advance in previous eight sessions in a row. 

Market indexes in China declined on the ongoing worries of the property sector woes and contagion fears to banks and steel and cement producers. 

 

China Exports Fall 4th Consecutive Month In August 

China's exports declined for the fourth month in a row by 8.8% in August and imports declined 7.3%. General Administration of Customs reported Thursday.  

Trade surplus declined to$68.4 billion from $80.6 billion in July after exports declined 8.8% to $284.9 billion and imports decreased 7.3% to $216.5 billion. 

Exports fell at a slower pace in August after a 14.5% decline in July and imports declined 7.3% following the decrease of 12.4% in the previous month. 

Exports to three largest trading partners declined in the month.

Shipments to ASEAN or Association of Southeast Nations, China's largest trading partner, declined 13.3, to European Union dropped 19.6% and to the United States decreased 9.5%. 

Export growth to Russia increased 16% in August after rising 52% in July and 91% in June.

Rare earth metals exports surged 30% to 4,775 metric tons on the rising global demand and weakening yuan against the U.S. dollar. 

Despite the month-to-month international trade volatility, exports for the first eight months to August declined 5.6% to $2.2 trillion. 

 

Asia Market Indexes 

In Thursday's trading, the Nikkei index decreased 0.8% to 32,991.08, the Shanghai SSE Composite index dropped 1.1% to 3,122.07, the Hang Seng index declined 1.3% to 18,207.17 and the KOSPI index decreased 2,544.40.

India stocks struggled in Mumbai after foreign institutional investors were net sellers of stocks in August. The yield on Indian government bonds edged higher and silver and gold traded volatile with a downward bias. 

Market indexes in Mumbai lacked direction and investors reviewed rising global bond yields and resurgent dollar. 

The Sensex and the Nifty indexes edged slightly higher in cautious trading but new 52-week highs remained above 200 for the third day in a row.  

The Sensex index increased 4.69 points to 65,885.21 and the Nifty index rose 4.61 points to 19,615.20. 

Despite the weak international market sentiment, domestic retail investors continue to pour money into large and mid cap stocks. 

In August, the Nikkei index fell 0.6%, the SSE Composite index declined 5.2%, the Hang Seng index fell 8.2% and the KOSPI index decreased 4.2%.