Asia report: Stocks fall as China trade data underwhelms

Stocks in the Asia-Pacific region were on the back foot on Thursday, after fresh trade data out of China came in short of expectations.

In Japan, the Nikkei 225 was down 0.71% at 27,430.30, as the yen weakened 1.43% against the dollar to last trade at JPY 144.71.

Fashion firm Fast Retailing was up 0.86%, while automation specialist Fanuc fell 1.02% and technology conglomerate SoftBank Group slid 2.03%.

The broader Topix index was 0.57% weaker by the end of trading in Tokyo, settling at 1,915.65.

On the mainland, the Shanghai Composite managed gains of 0.09% to 3,246.29, and the technology-centric Shenzhen Component was 0.42% firmer at 11,849.08.

Fresh data out of China showed exports growing 7.1% year-on-year in August - well below the 12.8% economists had forecast according to a Reuters poll.

It was also a serious slide from the 18% growth printed for July.

Imports, meanwhile, eked out gains of 0.3% for the month, down from 2.3% in July and also well below the 1.1% pencilled in by Reuters polling.

China’s trade surplus was $79.9bn in August, down from the record $101.26bn it recorded in July, after its weaker import data.

South Korea’s Kospi fell 1.39% to 2,376.46, while the Hang Seng Index in Hong Kong was off 0.83% at 19,044.30.

The blue-chip technology stocks were weaker in Seoul, with Samsung Electronics down 1.93% and SK Hynix losing 1.53%.

Oil prices were higher at the end of the Asian day, with Brent crude last up 00.26% on ICE at $93.06 per barrel, and West Texas Intermediate rising 0.25% to $87.10 on NYMEX.

In Australia, the S&P/ASX 200 slid 1.42% to 6,279.30, as data out of Canberra showed the country’s economy expanding by 0.9% in the second quarter, up from 0.7% in the first.

The Australian Bureau of Statistics put the growth down to the period being the first full quarter the country had reopened its borders in the wake of the Covid–19 pandemic.

It also said Australia’s economy was 3.6% bigger over the last 12 months, with strengthening domestic demand cited for the growth.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was off 0.44% at 11,548.30, as specialist dairy exporter A2 Milk lost 2.68% by the end of trading in Wellington.

The down under dollars were both weaker against the greenback, with the Aussie last off 0.2% at AUD 1.4876, and the Kiwi retreating 0.24% to NZD 1.6598.

Reporting by Josh White at Sharecast.com.