China beats forecasts and rises expectations

China’s export grew 14,1 percent compared with December2011 and hit a seven month peak, fresh data revealed. Market expectations were for a 4 percent rise. Import grew 6 % boosting the country’s trade surplus to USD 31,6 billion sharply up from November’s 19,6 and analysts forecasts.
The much stronger than expected trade data magnified the positive momentum created by Alcoa’s strong fourth quarterly results Tuesday which boosted Wall Street yesterday. Both Dow Jones and Nasdaq rose with 0,45 % led by Boeing and Hewlett Packard. Asian stocks rise with the Asian Pacific MSCI-index up 0,6 % keeping alive hopes for a recovery in the world’s second largest economy. The export figures also gave a boost to Chinese largest trading partner, Australia. Both the Australian stock index, AXJO, and the Australian dollar was up 0,3 percent.
The USD continues to rise against Japanese yen. USD/JPY is trading at 88,10 close to the peak reached last Friday. The dollar/JPY has risen 12 % over the last two months. With determined Japanese quantitative easing this trend is most likely to continue. Massive fiscal spending is set to weaken the yen and create conditions for lifting Japan out of a decade long deflation. Also the Euro/JPY has gained ground and is up 0,1 percent to 114,93 yen. Euro/USD is steady on 1.3146 ahead of today meeting in the European Central Bank (ECB).
The Japanese benchmark Nikkei stock exchange extended gains to 0,8 % after a couple of days pause as the yen continued to fall. Copper was up 0,2 %. NYMEX, US crude futures, rose to USD 93,38 a barrel as Chinese data raised hopes for firmer demand for commodities. Brent crude is trading in the interval USD 111 – 112 a barrel. Precious metals, Gold and silver, are trading just below USD 1060 an ounce and USD 30,35 respectively.
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