Asia: Stocks mostly higher after China trade data

Asia stocks were mostly higher on Wednesday after data showed China’s trade surplus rose more than expected.

The Hang Seng index closed up 1.13%, the Nikkei 225 rose 2.89% but the Shanghai composite dropped 2.41%.

China’s trade surplus widened to 382.05bn yuan in December from 343.10bn yuan in November, beating analysts’ forecasts of 338.80bn yuan.

Exports rose unexpectedly by 2.3% in December following a 3.7% dip a month earlier. Economists had pencilled in a 4.1% drop.

Imports declined 4% last month, compared to analysts’ estimates for a 7.9% fall and November’s 5.6% slide.

“China’s trade data for December support our view that, despite the turmoil in Chinese financial markets, there has not been a major deterioration in its economy in recent months,” according to Capital Economics.

“Meanwhile, another large trade surplus last month provides a cushion for the People’s Bank in the face of soaring capital outflows.”

The People’s Bank of China fixed the yuan at 6.5630 to the dollar on Wednesday, marking the fourth day that the central bank has kept its yuan guidance roughly stable.

The yuan traded at 6.5752 to the dollar in the offshore market, slightly stronger than 6.5770 late Tuesday.

The Japanese yen fell 0.5% to 117.80 against the dollar after rising 2% this year.

Oil prices recovered, with Brent crude rising rose 2.2% to $31.56 per barrel at 0855 GMT.