Asia stocks hold up, China gives up some gains after weak trade data

Most Asia-Pacific stocks markets strengthened on Wednesday, as expectations for stimulus from China and overnight gains on Wall Street boosted the mood.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) gained 0.6% in late morning.

China’s equity indexes gave up some gains after poor trade data in May. The benchmark equity index (.SSEC) was almost flat, while Hong Kong’s Hang Seng (.HSI) added 1%.

China’s exports shrank much faster than expected in May and imports fell, albeit at a slower pace, as manufacturers struggled to find demand abroad and domestic consumption remained sluggish.

“Domestic demand is subdued, but external demand was even weaker… so that supports the case for more resolute monetary policy stimulus measures by the PBOC (People’s Bank of China) to prop up domestic demand,” said Carlos Casanova, senior Asia economist at UBP.

This report’s information was first seen on REUTERS; to read more, click this link.