Asian recovery lifts shares
The S&P/ASX 200 closed 14.9 points higher at 4723 on Thursday after falling at midday. The All Ordinaries Index was slightly up at 4745.2.
"It's a positive sign that the Chinese economy is continuing to recover, particularly the strength we saw in the import numbers, the HSBC chief economist, Paul Bloxham, said. "That bodes well for the Australian economy.
"They are our major trading partner and we're seeing the recovery in China reflected in commodity prices already, particularly the iron ore price, which has risen very sharply ... and that supports Australian income growth."
China's trade surplus rose 48 per cent to US$231.1 billion ($218.9 billion) last year, though trade volume grew at a much slower pace, official data released on Thursday showed. Exports rose 7.9 per cent to $US2.05 trillion, while imports increased 4.3 per cent to $US1.82 trillion.
The Australian dollar rose as high as US105.55¢ on Thursday, while the further weakening of the Japanese yen resulted in the Aussie surging to a 4-year peak of just above 93 yen.
"The dollar exploded higher after the Chinese data [release] ... it's clear there's a recovery going on in east Asian trade," the ANZ currency strategist Andrew Salter said.
Mr Salter said the faltering yen reflected the Japanese government's indications it was set to embark on policies to weaken the yen, from changing the Bank of Japan's mandate to the setting of an inflation target.
The market did not react to data released by the Bureau of Statistics on Thursday that showed a 2.9 per cent rise in building approvals for November, just below expectations of 3 per cent. But private sector housing approvals fell 0.3 per cent for the same month.
The big four banks registered gains. ANZ closed 0.52 per cent higher at $25.15, Commonwealth Bank edged up 0.34 per cent to $61.61, NAB gained 0.32 per cent at $25.43, and Westpac finished 0.34 per cent higher at $26.60.
Among miners, Rio Tinto closed almost 30¢ higher at $67.10, Fortescue gained 11¢ at $4.85, and BHP fell 17¢ to $37.41.
Frequently Asked Questions about this Article…
Better-than-expected Chinese trade figures — including exports up 14.1% year‑on‑year last month — boosted investor sentiment. The S&P/ASX 200 closed 14.9 points higher at 4,723 as markets reacted to signs of an east Asian trade recovery that should support commodity demand and Australian income growth.
Stronger Chinese trade data pushed the Australian dollar higher: it rose as high as US105.55¢ and surged to a four‑year peak of just above 93 yen. Currency strategists said the data made it clear there was a recovery in east Asian trade, which supported the AUD.
China's annual trade showed exports rose 7.9% to US$2.05 trillion and imports rose 4.3% to US$1.82 trillion, with the trade surplus up 48% to US$231.1 billion. Economists noted the recovery is already reflected in commodity prices — especially iron ore — which can support Australian miners' revenues and broader income growth.
All four big banks recorded gains: ANZ closed 0.52% higher at $25.15, Commonwealth Bank edged up 0.34% to $61.61, NAB gained 0.32% at $25.43, and Westpac finished 0.34% higher at $26.60. Banking stocks often track overall market sentiment and economic outlook.
Miners generally benefited from the improved Chinese trade outlook: Rio Tinto closed almost 30¢ higher at $67.10, Fortescue gained 11¢ to $4.85, while BHP was an exception and fell 17¢ to $37.41. Strength in commodity demand can lift resource stocks, though individual company moves vary.
The article links the yen weakness to possible policy moves by the Japanese government and a change in the Bank of Japan's mandate; that contributed to the AUD's rise against the yen. For most everyday investors, a weaker yen is one of several global currency dynamics to watch, but its direct impact depends on your portfolio's currency and geographic exposure.
No — the market largely ignored the Bureau of Statistics housing data that day. Building approvals rose 2.9% in November (slightly below expectations of 3%), while private sector housing approvals fell 0.3% for the month, but these figures did not materially move the market compared to the stronger Chinese trade news.
International trade data — like China's export and import trends — can signal shifts in global demand that affect commodity prices, currency moves, and cyclical sectors such as miners and banks. Everyday investors can monitor such releases to gauge sentiment, reassess exposure to resources and exporters, and consider currency risk, while keeping a long‑term strategy in mind.
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