Asian and Pacific Rim markets were trading broadly higher by after lunch time. The gains come despite weaker than expected economic data out of China and increased trade tensions between the United States and China.
The Asian benchmark, in Japan, the Nikkei 225, was up 0.46 percent. The broader Topix index, in Tokyo, rose 0.41 percent.
Economic data showed that exports, for November, contracted by 1.1 percent on an annual basis. The financial markets expected an increase of one percent. Chinese imports, for the same month, gained 0.3 percent. These were expected to fall 1.8 percent.
On the mainland, in China, the equity indices edged higher, as well. The Shanghai composite was up 0.1 percent. The smaller Shenzhen composite reversed early losses to climb 0.13 percent. The Shenzhen component was also up 0.13 percent.
Protests in Hong Kong have now been going on for half a year. The Hang Seng index added 0.37 percent despite pro-democracy protests occurring throughout the city over the weekend.
Asian Traders Digest a Solid Non-farm Payroll Report but Trade Tensions Worry
Asian traders were also digesting Friday’s release of the U.S. non-farm payroll (NFP) came in better than expected for the month of November. The U.S. economy added 266,000 new jobs.
This was the largest gain in ten months. The unemployment rate fell from 3.6 percent to 3.5 percent. This is a new five decade low. Hourly wages were mixed but showed some signs of improvement.
The NFP signals that the 17 month trade war with China, which has hit the manufacturing sector hard, has yet to spill into the other sectors of the world’s largest economy.
However, should the U.S. White House enforce $156 billion in new tariffs on Chinese goods at the December 15, the economy could continue to slow further as weakness spills into other sectors of the economy.