Asian shares rebounded on Thursday following the previous day’s sharp sell-off as investors cheered strong data from the world’s second biggest economy.
China’s April trade report came in much better than expected with exports rising 0.9 percent from a year ago. That was well above Reuters estimates for a 1.7 percent fall and March’s 6.6 percent tumble. Meanwhile, imports jumped 0.8 percent compared to an 11.3 percent slump in March.
“China’s export sector seems to be doing ok, as would be expected during a year in which domestic demand in the U.S., Japan, U.K., and Europe is strengthening. With China’s exports consolidating and most of its PMIs marginally higher in April than March, there is a good chance that the People’s Bank of China will allow the yuan to recover some of the first quarter’s depreciation in the second quarter,” said Bill Adams, senior international economist for PNC Financial Services Group.
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