China stocks rallied as bleak trade data sparked speculation over additional stimulus
It was a mixed finish in Asia today, as traders across the region reacted to
another round of disappointing import and export data out of China. The news triggered losses for trade partners like South Korea, even as mainland stocks surged on expectations for additional stimulus. Traders in China also cheered reports that equity regulators are set to allow initial public offerings (IPOs) once again, ending a roughly three-month dry spell of new listings, thanks to
the market's recent gains and a renewed risk appetite among investors. Meanwhile, in Tokyo, the yen's downturn against the dollar brought buyers to the table. By the close, Japan's Nikkei gained nearly 2%, China's Shanghai Composite added 1.6%, Hong Kong's Hang Seng slipped 0.6%, and South Korea's Kospi gave up 0.8%.
European markets are modestly lower at midday, with automakers among the top laggards. Germany's Continental is down nearly 6% in Frankfurt after missing analysts' quarterly sales estimates, while Renault is off 2.3% in Paris after French Prime Minister Manuel Valls voiced his opposition to a merger with Nissan. At last check, the French CAC 40 is down 0.6%, Germany's DAX has dropped 0.3%, and London's FTSE 100 is 0.1% lower.
