Strong March exports buoy China stocks, confusion remains over electronics tariff exemption
China's stock market rose on Monday amid newly released trade data showing a strong rise in March exports, indicating that domestic exporters may have been frontloading outbound shipments to stay ahead of US tariff increases as they also diversify export markets.
The Shanghai Composite Index advanced 0.76 percent, and the Shenzhen Component Index edged up 0.51 percent. Hong Kong's Hang Seng Index jumped 2.40 percent.
China's overall yuan-denominated exports in March jumped 6.9 percent from a year earlier, beating analysts' forecast. The exports to the United States gained 5.6 percent to 287.3 billion yuan (US$39.2 billion), according to the General Administration of Customs on Monday. They accounted for 12.8 percent of the March total.
Resilient trade
"China's trade has maintained a steady growth trend amid a gloomy global outlook," said Wang Lingjun, deputy chief of the Customs told a press briefing on Monday. "The recent US abuse of its tariffs will inevitably impose a negative impact on trade across the world, but China's exports won't collapse. We will continue to diversify foreign trade partners while further exploring the potential of the domestic market."
Bolstered by the electronics exemption, major Asian stock indices, including those in Japan, South Korea, Singapore, India and Australia, all strengthened. Japan's Nikkei lifted 1.18 percent, while Indian and South Korean shares strenghthened 1.77 percent and 0.95 percent separately.
Confusion continued over US tariffs. On Saturday, President Donald Trump announced an exemption from reciprocal tariffs on US imports of phones, computers, chips and related electronics products. A day later, his administration said the revocation is temporary and indicated specific tariffs may be forthcoming on the electronics sector.
China, which has been hit by 145 percent US import tariffs, called the exemption "a small step to correct mistake of the unilateral reciprocal tariffs." It again called on the US to halt its trade war.
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