China Trade Improves, Boosts Asian Stocks
Recent Chinese trading figures have suggested that a slowdown in its economic growth was now entering into a plateau. As a result, Asian stocks were observed to be generally higher on Thursday.
The improvement in the world’s no. 2 economy has reportedly occurred because of an increase in both exports and imports that have exceeded expectations. Andrew Sullivan of Kim Eng Securities in Hong Kong commented that the rise in Chinese and Asians stocks is an encouraging trend although there are some worries over the imports being so high.
Volatility in the markets, not only in Asia, but also throughout the world is said to be a reaction of speculations that the Federal Reserve might pull back its monetary stimulus program. This program had helped keep the interest rates low and had unintentionally pushed the stock markets up.
The recent boost in the US economy suggests that the Fed might even choose to phase out the program as early as in September.