Eco Analysis - Disappointing data across Asia: CH trade, AU home loans, JP in recession (K. Baader, W. Yao, K. Katahira)

Eco Analysis - Disappointing data across Asia: CH trade, AU home loans, JP in recession (K. Baader, W. Yao, K. Katahira)

■ Disappointing China's trade data reflected structural weakness in both external and domestic demand.

Contrary to the activity data released over the weekend, China's trade growth in November disappointed, with exports growing 2.9%yoy (Cons. 9%, SG 7%, Previous 11.9%) and imports flat yoy (Cons. 2%, SG 0%, Previous 2.4%). As a result of weak exports, the trade surplus also came in smaller than expected at USD19.6bn (Cons. & SG, USD26.8bn), down from USD32bn in October.

Eco Analysis - Australia: Big trade deficit, but also better exports (K Baader)

Eco Analysis - Australia: Big trade deficit, but also better exports (K Baader)

Australia's October trade figures added another piece of evidence that intra-Asian trade - and arguably global trade - is picking up. Export values rose for the first time in five months, albeit by a mere 0.4% mom, but that is a respectable performance considering that, according to the RBA measure, commodity prices were down 2.2% in October. The rise owed much to a jump in exports to China, which surged 20% mom (but caution, not seasonally adjusted), lifting the annual rate to -11% from -25%. This supports the notion that de-stocking in China has come to an end. Meanwhile, imports into Australia surged, led by capital goods, indicating that strong investment activity extended into Q4.

German Consumer Prices: Unexpectedly strong inflation pressures

German Consumer Prices: Unexpectedly strong inflation pressures

A higher than expected reading on German consumer price inflation is another indication that underlying price pressures in Germany are rising.