Asia report: Shares rise on surprise China export data

Asian shares rose on Tuesday as better-than-expected trade data from China boosted sentiment across the region.

Japan's Nikkei rose 3.13% to close at 19,638.81 on news that Chinese exports for March fell less than had been feared in the face of the coronavirus pandemic. The Topix index closed 1.96% higher to 1,433.51.

Chinese stocks were cheered by the news as the Shanghai composite finished up 1.59% to 2,827.28 and the Shenzhen composite rose 2.22% to 1,745.42. In Hong Kong the Hang Seng index closed 0.65% higher.

China’s dollar-denominated exports in March fell only 6.6% year on year, far less than the 14% feared by the markets in the wake of the country's lockdown to stymie the spread of the virus. Imports slipped by 0.9% compared with expectations for a 9.5% drop.

Analysts at TD Securities said the good news was "unlikely to last" as demand side weakness would likely result in a sharp decline in exports over the next few months.

"China's trade surplus with the US fell to its lowest since Feb 2017 but it will be extremely difficult for China to live up to its pledges in the Phase 1 trade deal with the US," the broker said.

Shares in Japanese conglomerate Softbank Group rebounded from an earlier slide of more than 3% to close 5.24% higher. The firm on Monday said it expected its Vision Fund to book a loss of YEN1.8 trln (£13.3bln) for fiscal year 2019, citing a "deteriorating market environment".

On other regional bourses, South Korea’s Kospi climbed 1.72% to close at 1,857.08. Australian shares were also in positive territory after the Easter break with the S&P/ASX 200 closing 1.87% higher at 5,488.10.

Gold miners and tech stocks led the market as bullion prices rose to seven-year highs and a late rally on the US Nasdaq boosted sentiment.

Shares in Virgin Australia were suspended ahead of an announcement after media reports said the troubled airline had hired turnaround experts Houlihan Lokey and was considering going into administration.

In a statement to the stock exchange the airline said it "continues to consider the issues brought about by the Covid-19 crisis including discussions with respect to financial assistance and restructuring alternatives which are ongoing".