Data from the General Administration of Customs showed that China's export rose 4.3% to $207.7 billion in December 2013, slowing from November's 12.7% expansion. Imports rose 8.3% to $182.1 billion, up from the previous month's 7.6%. Resulting, trade surplus was $25.6 billion in December 2013, down from November's $33.8 billion.
The 2013 trade surplus rose to $259.8 billion from $231 billion in 2012. Exports rose 7.9% in 2013 while imports were up 7.3%. Total trade growth was just below the full-year 8% target at 7.6%, but an improvement over 2012's 6.2% increase.
Chinese economic data so far this year has pointed to a picture of weakness in the world's second-largest economy, with releases earlier in the month showing a deceleration in activity for both the services and manufacturing sectors. In addition, inflation numbers on Thursday suggested that the Chinese economy is cooling.
There was also some caution ahead of U.S. job figures scheduled to come out later in the global day. Market expectations are for a payrolls number around 197,000 jobs, with the unemployment rate seen at 7%.
Data yesterday showed applications for U.S. unemployment benefits declined by 15,000 to 330,000 in the period ended Jan. 4. The data can be volatile after the holidays as temporary workers are dismissed, a Labor Department spokesman said as the report was released.
Among Asian bourses, Japan's share market finished the session firmly in positive terrain on the back of bargain buying in late hour. But, gains were marginal on caution before the release of the closely watched U.S. jobs report later in the day. The Nikkei Stock Average advanced 31.73 points, or 0.2%, to finish the session at 15912.06. The broader Topix index of all First Section shares of the Tokyo Stock Exchange added 1.73 points, or 0.13%, to 1298.48.
Export related shares were mixed, with Trend Micro Inc fell 3.1% to 3500 yen, while Nintendo Co rose 4.3% to 16080 yen, extending yesterday's rally after China temporarily lifted a ban on manufacturing and selling video game consoles within in the country.
Fast Retailing Co shares jumped 3.3% to 41100 yen after the operator of clothing chain Uniqlo logged a record high net profit for its first quarter, largely driven by a stronger-than-expected performance overseas, including its operations in China and the U.S. Fast Retailing generated a net profit of 41.85 billion yen for the September-November quarter, an 8.8% gain from the same period year earlier. Sales jumped 22% to 389.05 billion yen helped by a 77% gain in overseas Uniqlo store sales.
The Bank of Japan said on Friday that it and the Reserve Bank of India have signed an agreement that expands the maximum amount of the bilateral swap arrangement to $50 billion from $15 billion, effective immediately. The arrangement, effective for three years until Dec. 3, 2015, "aims at addressing possible short-term liquidity difficulties and supplementing the existing international financial arrangements, as one of the efforts in strengthening mutual cooperation between Japan and India," it said.
In Australia, shares of the Australian stock market finished mostly lower with iron ore and coal miner blue chips leading downtrend after growth in Chinese exports in December showed a marked decrease from the prior month.
The benchmark S&P/ASX 200 index declined 12 points, or 0.23%, to 5312.40. The broader All Ordinaries lost 11.20 points, or 0.21%, to 5316.30. For the week, S&P/ASX 200 Index lost 0.7% over the week to close at 5312.4 points, while the broader All Ordinaries Index also lost 0.7% to 5316.3.
Metals and mining shares declined the most, dragging the material sub-index 1.3% lower, due to weaker commodity prices and as slew of disappointing economic indicators out of China, the biggest market for Australia's resource exports. BHP Billiton was down 1.4% to A$36.44 and Rio Tinto 2.5% to A$63.65. Fortescue Metals lost 3% to A$5.20. Stock in Alumina dropped 2.2% to A$1.115 after its U.S. partner Alcoa Inc posted a quarterly loss.
Forge Group (FGE) went into a trading halt ahead of an update on its financial position. This will remain in place until the earlier of the announcement being made or the commencement of trade next Tuesday January 14. FGE recently announced that Black Rock Group had taken a stake in the mining services company having been awarded new contracts at The Roy Hill iron ore mine in Western Australia. FGE shares last traded at A$1.25.
The Housing Industry Association, an umbrella group for the nation's major home builders, said on Friday that sales of newly built homes in Australia rose at 7.5% MoM in November 2013. That was the biggest increase since January 2010. The jump in sales of newly built houses and apartments is the latest indication that record-low interest rates are fuelling a recovery in other parts of Australia's resource-rich economy as a long mining boom cools.
In South Korea, shares in Seoul market closed at a new four-month low on worries about a weaker earnings outlook for the October-December period. The KOSPI index dropped 0.4% to 1938.54.
Shipbuilders dragged the most in Seoul market, with Hyundai Heavy Industries down nearly 5% and Samsung Heavy 6% lower. But steelmaker Posco rose 0.5% after finally receiving approval from India's environment ministry for its steel plant in the state of Odisha.
In China, shares in Mainland China declined to a new five-month low, as weaker than expected trade report and lingering concern over market liquidity after glut of initial public offerings (IPOs). The benchmark Shanghai Composite index dropped 14.32 points to finish at 2013.30, while the CSI 300 Index shed 17.37 points to close at 2204.85.
Selling pressure continued to dominate in Shanghai as investor concerns over an economic slowdown aggravated following the release of weaker than expected China's trade figures. Official data showed that Chinese exports rose 4.3% to $207.7 billion, slowing from November's 12.7% expansion. Imports rose 8.3% to $182.1 billion, up from the previous month's 7.6%.
Risk aversion selling also fueled on concern over market liquidity after the resumption of initial public offerings and as People's Bank of China declined to add fresh short-term funding again to the interbank market this week. The China Securities Regulatory Commission approved seven IPOs as on 7 January 2014, bringing the total number of those approved to 38. Shaanxi Coal Industry Co. plans to raise 9.83 billion yuan ($1.6 billion) by selling one billion shares in Shanghai on Jan. 17, making it China's biggest IPO in more than two years.
Among Shanghai index blue-chips, China Railway Construction Corp. slid 2.8% to drag down industrial companies. Goertek Inc., a supplier to Apple Inc., declined to the lowest level since June. Haitong Securities Co. slid to a two-month low after posting a loss in December. Dairy producer Inner Mongolia Yili Industrial Group Co. rose to the highest level this year to lead gains.
The China Association of Automobile Manufacturers said on Thursday that vehicle sales in China rose 13.9% last year from a year earlier, beating expectations and capped off by a 17.9% surge in December. The results far exceeded the industry group's forecast of 7% for the full year, marking a solid rebound in the world's biggest automobile market following two years of stagnant growth. The recovery was partly aided by a rebound in sales of Japanese cars, whose China sales had slumped in 2012 due to anti-Japanese sentiment triggered by a territorial dispute between the two countries.
In Hong Kong, shares in city market advanced, as investors chased for value buying in after China released mixed trade data for December. But, gains were limited on caution before the release of the closely watched U.S. jobs report later in the day. The benchmark Hang Seng Index provisionally ended 58.92 points higher from prior day at 22846.25.
Among the HK 50 blue chips, 32 rose, 24 fell, while remaining 4 stocks finished steady. China Resources Power Holdings Co advanced 3.3% to JK$18.80, while Sands China declined 3% to HK$63.90, making themselves the biggest blue-chip gainer and loser.
Shares in Standard Chartered fell 1.4% to HK$165.70, following a decline on their London listing, after the bank announced it would merge its wholesale and consumer banking units, a structural overhaul intended to revive its performance after a tough 2013.
Shares of Aluminum Corp. of China fell 0.8% to HK$2.59 after aluminum producer Alcoa Inc.'s quarterly results missed Wall Street expectations. Alcoa Inc, the U.S. aluminum producer, reported a big quarterly loss as it took a $1.7 billion non-cash impairment charge on past smelter acquisitions.
In India, key benchmark indices held firm in afternoon trade. The market sentiment was boosted by IT major Infosys raising its revenue growth guidance for the year ending 31 March 2014 (FY 2014) at the time of announcement of its Q3 December 2013 results before trading hours today, 10 January 2014.
At 13:20 IST, the S&P BSE Sensex was up 171.81 points or 0.83% to 20,885.18. The index jumped 188.84 points at the day's high of 20,902.21 in mid-morning trade, its highest level since 6 January 2014.
Infosys gained 2.88% to Rs 3,550.50. The stock hit a high of Rs 3,575.20 and low of Rs 3,449 so far during the day. Infosys' consolidated net profit jumped 19.4% to Rs 2875 crore on 0.5% increase in revenues to Rs 13026 crore in Q3 December 2013 over Q2 September 2013. The results are as per International Financial Reporting Standards (IFRS). The strong sequential growth in the company's bottom line was due base effect - Infosys' bottom line in Q2 September 2013 was hit adversely due to a provision of Rs 219 crore during that quarter for one-off visa costs.
Infosys has raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014. The company expects consolidated revenue in rupee terms to grow 24.4% to 24.9% for the fiscal year ending 31 March 2014 (FY 2014). This guidance is based on rupee dollar conversion rate of 61.81 for the rest of the financial year. The company expects consolidated revenue in dollar terms to grow 11.5% to 12% in FY 2014.
Tata Power Company fell 0.31%. The company said during market hours that late last night (near midnight of 9th January 2014), a loud thud was observed in Low Pressure Turbine accompanied by fire on the turbine and generator deck of the 250 megawatts (MW) Unit 8 at Trombay.
On the macro front, trade deficit widened in December 2013 on slowing export growth, data released by government today, 10 January 2014 showed. The trade deficit stood at $10.14 billion in December 2013, compared with $9.22 billion in November 2013. Merchandise exports rose 3.49% year-on-year to $26.35 billion, slowing down from a 5.86% pace in November. Imports fell 15.25% year-on-year to $36.49 billion as gold and silver imports dropped.
Industrial production is seen registering a muted growth of 0.9% in November 2013, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production had declined 1.8% in October 2013, against 2% growth in September 2013. The decline in the output of manufacturing sector at 2% and mining sector at 3.5% mainly led to decline in industrial production in October 2013. The government will unveil industrial production data for November 2013 after trading hours today, 10 January 2014.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 index rose 1.03%. Indonesia's Jakarta Composite index added 0.83%. Taiwan's Taiex index jumped 0.17%. Malaysia's KLSE Composite shed 0.13%. Singapore's Straits Times index eased 0.03%.
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