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More Negative Economic News From Asia

  • Written by Syndicated Publisher 1 Comment1 Comment Comments
    February 21, 2014

    Asian stocks were down last night on the back of more dismal news from the world’s second and third largest economies.

    Manufacturing activity in China, the world’s second largest economy, declined to a seven-month low in February. The HSBC PMI manufacturing index, which was already under the 50 level indicating contraction, slid further from 49.5 in January to 48.3 in February.

    China’s market recovery from the 2008 global financial meltdown was short-lived. It could use better news.

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    And Japan, the world’s third largest economy, reported that its trade deficit widened significantly in January. Exports were up only 9.5% from a year ago, down from 15.3% in December, and missing the consensus forecast of 12.5%. And imports surged higher by 25% year-over-year. That widened the trade gap to a record 2.790 trillion yen from December’s 1.302 trillion yen.

    The Japanese market’s recovery from the 2008 meltdown was rocky in 2010, 2011, and 2012, but caught fire last year on hopes that new Prime Minister Shinzo Abe’s aggressive economic rescue programs (dubbed Abenomics) would work to pull the economy out of years of stubborn deflation, spur higher wages, consumption and growth.

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    But doubts about Abenomics are rising. This report that Japan’s trade gap is widening significantly, not narrowing, is not good news, on top of worries about effect of the U.S. Fed’s tapering back its stimulus.

    To read my weekend newspaper column click here: Watch For A Taper Time-Out

    Subscribers to Street Smart Report:

    In addition to the charts and signals in the secure area of this blog, the ‘Mid-Week Markets Update’ from yesterday is in your secure area of the Street Smart Report website.

    Images: Flickr (licence attribution)

    About The Author – Sy Harding, Street Smart Report

    Sy Harding publishes the financial website Street Smart Report Online and a free daily Internet blog at Sy’s Free Blog. In 1999 he authored Riding The Bear – How To Prosper In the Coming Bear Market. His latest book is Beat the Market the Easy Way! – Proven Seasonal Strategies Double Market’s Performance!

    It includes our research and analysis on the economy and markets, and provides charts and buy and sell signals on the major market indexes, sectors, bonds, gold, individual stocks and etf’s, including short-sales and ‘inverse’ etf’s.

    It provides two model portfolios as guides. One is based on ourSeasonal Timing Strategy, one on our Market-Timing Strategy.

    In depth updates are provided every Wednesday, with interim ‘hotline’ updates every time we make a trade. An 8-page traditional newsletter Street Smart Report is provided on the website every 3 weeks, in pdf format for viewing or printing out.

    There is the Street Smart School of online technical analysis ‘seminars’,commentaries to keep you ‘street smart’ about Wall Street, and much more. 

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