China's exports grow for the first time in six months in November

China’s exports grew for the first time in six months in November, giving a boost to policymakers eager to stimulate a recovery in the world’s second-largest economy.

Mixed manufacturing data for November has kept alive calls for further policy support to shore up growth but also raised questions about whether predominantly negative sentiment-based surveys have masked improvements in conditions.
 

Exports grew 0.5 per cent from a year earlier in November, customs data showed on Thursday, compared with a 6.4 per cent fall in October and beating the 1.1 per cent drop expected in a Reuters poll. Imports fell 0.6 per cent, dashing forecasts for a 3.3 per cent increase and swinging from a 3.0 per cent jump last month.

 

“The improvement in exports is broadly in line with market expectations... sequential growth in China's exports in the past few months has strengthened,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management. “There are green shoots in other Asian countries’ export data as well in recent months.” The Baltic Dry Index, a bellwether gauge of global trade, climbed to a three year high in November, supported by improved demand for industrial commodities, particularly from China.
 

South Korean exports, another gauge of the health of global trade, rose for a second month in November, buoyed by chip exports, which snapped 15 months of declines. Trade with China’s major peers also painted a rosy picture, with exports to United States, Japan, South Korea and Taiwan all up on October.
 

In the short run, however, the pressure on Chinese manufacturers show little sign of easing off completely.
 

China’s official purchasing managers’ index (PMI) last week showed new export orders shrank for a ninth consecutive month, while a private sector survey highlighted the struggles of factory owners to attract overseas buyers for a fifth month.

Moody’s told China staff to stay at home ahead of rating cut: FT

Moody’s Investors Service advised its staff in China to work from home ahead of its announcement this week cutting the outlook for sovereign bonds to negative in the world’s second-largest economy, the Financial Times reported. 
 

Department heads advised non-administrative staff in Beijing and Shanghai not go into the office, the paper reported, citing two Moody’s staff. One of employees said the move was likely motivated by fear of government inspections after the rating company’s outlook cut, according to the FT.