London / AFP
World stock markets sank deep into the red on Tuesday, as China released data showing another hefty slump in exports, sparking renewed worries over the nation’s powerhouse economy.
China’s exports dived more than a quarter on-year in February, new data showed on Tuesday, while imports were almost 14 percent off—far worse than forecast. “That shocking slide in exports was joined by at similarly weak, if not quite as alarming, drop in imports”, said analyst Connor Campbell at Spreadex.
In reaction, most Asian markets fell, with investors also cashing in after enjoying their best rally so far this year.
Hong Kong retreated 0.7 percent and Tokyo dropped 0.8 percent, but Shanghai reversed initial heavy falls to eke out slender gains.
The gloom spilled over into Europe, with Frankfurt and Paris shedding 1.2 percent and 1.3 percent respectively, while London lost 0.8 percent.
“Equity markets (are) in the red again, with disappointing overnight Chinese trade data showing plunging February exports serving to spook investors who are already concerned about the state of global growth,” said head of research Mike van Dulken at Accendo Markets.
“The market reaction is in stark contrast to the habitual cheering about bad data implying more stimulus, and the Lunar New Year may explain the big drop.”