Asia: Stocks rally as Chinese trade surplus widens

Asian stocks gained as China’s trade surplus unexpectedly widened in November.

The trade surplus grew to $54.47bn in November from $45.41bn the previous month, despite exports falling to a seven-month low of 4.7%.

“One problem we have here is that Chinese trade figures always throw up more questions than answers due to the lack of transparency,” Alpari UK analyst Craig Erlam said.

“For example, in recent months, distortions with the reported trade figures between China and Hong Kong have led to suggestions that capital inflows are once again being passed off as exports.”

The Shanghai composite jumped 2.81%, while Hong Kong’s Hang Seng index rose 0.19%.

Japan’s Nikkei 225 increased 0.08% as a report showed gross domestic product (GDP) fell more than first estimated, justifying the Bank of Japan’s recent stimulus measures.

GDP shrank an annualised 1.9% in the third quarter, larger than the initial estimate of a 1.6% contraction.

Meanwhile, oil prices slide after Morgan Stanley cut its forecasts, saying oversupply would peak next year after OPEC decided against cutting output.

"Without OPEC intervention, markets risk becoming unbalanced, with peak oversupply likely in the second quarter of 2015," Morgan Stanley analyst Adam Longson said.

Cnooc, China’s largest offshore oil explorer, declined in Hong Kong following the report.

Prada SpA edged lower in Hong Kong after the Italian fashion house reported a 44% drop in third-quarter profit.