Chinese Shares Surge Despited Negative Data

Shares in mainland China jumped on Monday despite the world’s second largest economy reporting weak export data over the weekend.

The country’s exports fell by 8.3% in July, far worse than expected and the producer price index was down 5.4% from a year earlier.

However, the benchmark Shanghai Composite ended up 4.9% at 3,928.42.

Investors were trading on the expectation of yet another round of stimulus policy.

In Hong Kong, the Hang Seng index failed to pick up on the mainland’s optimism and closed down 0.1% at 24,521.12.

In Japan, the Nikkei index was higher, closing 0.4% higher at 20,808.69.
In Australia, the S&P/ASX 200 index rose 0.6% to 5,509.20.

via BBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza