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China trade lends support to Asian stocks

A larger Chinese trade surplus and a rebound in chipmakers gave Asian equities a modest lift on Wednesday. China’s producer-price inflation accelerated, but consumer inflation remained subdued, pointing to continued weakness in domestic demand. US stocks closed lower on Tuesday amid technology losses, while European markets were mixed. Investors now await Wednesday’s US inflation report and quarterly results from companies including ASML, Bank of America and Morgan Stanley.

  • Date
  • Auteur Amira Scherz, Junior Investment Writer
  • Temps de lecture 5 minutes

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China trade surplus and factory inflation rise

China’s producer prices rose 5% year-on-year in September, up from 3.8% in August and the fastest pace since 2022, data released on Wednesday showed. Higher fuel and commodity costs, partly linked to Middle East supply disruptions, drove the increase. Consumer inflation edged up to 0.9% from 0.8% but missed forecasts as weak demand limited the impact of higher production costs on household prices; core inflation held at 1%. China’s trade surplus also widened to USD 133.53 billion from USD 119.09 billion in the previous reading, exceeding market expectations.

Asian stocks gain as chipmakers rebound

Asian shares rose modestly on Wednesday, with Korea’s KOSPI gaining 0.6%. Samsung Electronics and SK Hynix recovered from losses driven by concerns about Chinese competition. China’s trade figures supported sentiment, while rising oil prices and caution ahead of US inflation data limited broader gains. Brent and West Texas Intermediate (WTI) crude oil futures each rose 0.5% to USD 106.20 and USD 94.56 per barrel, respectively. Gold was little changed at around USD 4170 per ounce, and bitcoin declined 0.2% to about USD 83,600.

US stocks slip amid tech weakness

US stocks edged lower on Tuesday: the Nasdaq-100 fell 0.3% to 30,569.480 points, the Dow Jones lost 0.4% to 51,670.10, and the S&P 500 slipped slightly to 7805.45. Chip-equipment maker Applied Materials dropped 6.7% after a limited outlook, while memory-chip producer Micron lost 3.6% amid concerns about Chinese competition. Bank results were mixed: Goldman Sachs and Citigroup beat market profit and revenue forecasts, although Citigroup shares fell 5.6% on doubts about its profitability target. JPMorgan Chase missed profit expectations, while Wells Fargo fell short on revenue.

European stocks diverge while Germany’s inflation rises

The EuroStoxx 50 fell 0.6% to 6167.01 points on Tuesday as higher gas prices and technology losses weighed, with Dutch chip-equipment maker ASML down more than 4% amid concerns about Chinese competition. Switzerland’s SMI gained 0.4% to 13,927.52 points, supported by defensive stocks. Separately, final data confirmed that Germany’s EU-harmonised inflation rose to 3.3% year-on-year in September from 2.9% in August.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from ASML, Bank of America, BlackRock, Morgan Stanley, and Progressive.

Economic data in focus: European Central Bank President Christine Lagarde speaks (10:30), US Consumer Price Index (14:30), Federal Reserve Beige Book (20:00).

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