China Recovery Remains in the Spotlight

Global investors will look to a batch of Chinese data on Friday for evidence that a strong bounce in July trade was not a fluke and that the world’s second-largest economy is stabilizing after more than two years of slowing growth.

Economists were quick to point out that the overall trend remained subdued and it was too early to treat a 5.1 percent rise in exports from a year ago and an even bigger 10.9 percent jump in imports as signs of an imminent turnaround.

Indeed, exports in the three months ended July 31 posted the slowest annual increase since October 2009, Reuters calculations showed.

But Thursday’s figures, which handily beat market expectations, raised hopes that China could be spared a sharp slowdown that dismal June figures, when exports fell for the first time in 17 months, seemed to suggest.


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