Publications
Partners
Hong Kong - Asian markets rose on Thursday, taking a lead from a Wall Street rally, after minutes from the US Federal Reserve's latest policy meeting showed no support for an early rise in interest rates.
But early gains were pared after China said imports and exports fell sharply in March, adding to concerns about the world's number two economy.
Hong Kong was up 0.14% by the break, Tokyo added 0.10% in the afternoon and Sydney gained 0.47% after unemployment saw a surprise fall in March. Shanghai and Seoul were flat.
Regional investors were given a positive lead from the United States after the Fed minutes showed bank policymakers were broadly in favour of continuing a steady reduction in its stimulus programme.
The news soothed fears of an early rise in rates. Last month stocks sank after Fed chief Janet Yellen suggested rates could go up in early 2015, earlier than most analysts had expected.
"There's been this overriding fear in the market that tightening would be sooner on the horizon than people imagine," said Brent Schutte, market strategist at BMO Global Asset Management. "Today's minutes walk back some of those fears."
The three main indices on Wall Street climbed for a second successive day on the back of the minutes.
The Dow jumped 1.11%, the S&P 500 advanced 1.09% and the tech-rich Nasdaq surged 1.72%.
The minutes also put pressure on the dollar as lower interest rates prompt investors to seek better returns elsewhere. The greenback stood at ¥101.78 in Tokyo on Thursday, compared with ¥101.97 in New York, while the euro was at $1.3847 and ¥140.98 against $1.3852 and ¥141.2.
China said Thursday that imports slumped 11.3% year-on-year and exports fell 6.6%. Expectations had been for imports to rise 2.8% and exports to jump 4.2%.
The news adds to increasing uncertainty about the Asian economic giant and key driver of global and regional growth following a string of weak indicators including on investment and industrial output.
It also led a customs spokesperson to admit: "Currently our foreign trade indeed is having some difficulties."
He added the country's foreign trade had been hit by factors from rising competition from neighbouring countries as well as "friction with major trade partners".
Oil prices slipped. New York's main contract West Texas Intermediate for May delivery dropped 25 cents to $103.35 a barrel in mid-morning trade and Brent North Sea crude for May slid 26c to $107.72.
Gold fetched $1 316.11 an ounce at 04:45 GMT, up from $1 305.60 late on Wednesday.
