Who needs trade when you can trade.
The Hang Seng index, Hong Kong’s stock market benchmark, rose more than 2.7% Monday, good for its second-best day of 2015 and a year-to-date increase that now stands at 18.7%. That’s despite the rough trade numbers that came out of Beijing, with a puzzlingly low export figure.
China-watchers concluded that the disappointing export data means the People’s Bank of China is on its way to smooth things over, which should be good for stocks.
“Well, after what seemed like a year of beating expectations, China’s trade surplus finally disappointed in March….and then some, which bolstered (once again) expectations for more stimulus,” analysts at Bank of Montreal wrote in a note to clients.
The Shenzhen A Share and the Shanghai Composite, two of China’s other main indices, stopped marching higher, had a strong day as well, extending their year-to-date gains.