Asia wrap: China's glass is half empty

Stephen Innes SPI Asset Management

Asia markets continue to trade mixed after China trade data suggested the glass is half empty regarding domestic demand.

China imports -7.9% y/y vs expected -0.2% y/y (prior: -1.4%). There is no way to sugarcoat this one, as it's a colossal miss of epic proportions. Hence the clear read-through is to expect weaker inflation numbers on Thursday as domestic demand remains exceptionally fragmented. And this begs the question, where is the PBOC support?!!!

While the SLOOS is better than expected, the wobbly loan demand details suggest uncertainty remains high regarding the timing of tightening in the current environment.

Author

Stephen Innes

SPI Asset Management

With more than 25 years of experience, Stephen has a deep-seated knowledge of G10 and Asian currency markets as well as precious metal and oil markets.

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