Asian markets make gains on upbeat Chinese data

 
Guy Bentley
Follow Guy

Asian markets are on the rise after data from China showed a rise in the May trade surplus, with exports jumping seven per cent on year.

The rise in exports can partly be attributed to the easing of distortions caused by over-invoicing.

On Friday, the Dow Jones and the S&P 500 rose to record highs after US non-farm payrolls showed 217,000 jobs were created in May, with the jobless rate remaining at 6.3 per cent.

The Nikkei is up 0.4 per cent in the wake of revised first quarter GDP numbers showing an expansion of 6.7 per cent, significantly above analysts estimates of 5.6 per cent.

Japanese consumer confidence has also continued to recover from the impact of April's sales tax hike. The headline index rose from 37.0 in April to 39.3 in May, with all components improving.

However, this remains below the historical average of 41.5. "One reason why consumers may have become less pessimistic is that they expect price pressure to fade", said Marcel Thieliant, Japan economist at Capital Economics.

The London-based consultancy's measure of the weighted average increase in prices expected by households over the coming year dropped from three per cent in April to 2.8 per cent last month, the lowest since last July.

South Korea's Kospi is down 0.4 per cent following Friday's holiday.