China leads Asian shares with strong trade data, BOE in spotlight

Chinese trade data boosts Asian shares, yen stabilizes after intervention hints

Asian shares were mixed on Thursday, with solid Chinese trade data helping China stocks outperform. The yen stabilized after three days of decline as Japanese authorities hinted at potential currency intervention.

Chinese customs data showed imports jumped 8.4% in April from a year earlier, beating expectations, while exports returned to growth, boosting economic growth. This news helped Chinese shares build on earlier gains, with blue-chip stocks rising 0.9% and Hong Kong’s Hang Seng index increasing 1.2%.

The prospect of a June rate cut is in focus following Sweden’s Riksbank rate cut, highlighting Europe’s divergence from the U.S. Federal Reserve. Investors are awaiting U.S. consumer inflation data due on Wednesday.

Japan’s Nikkei reversed earlier gains to be off 0.2%, while Australia’s resources-heavy share market lost 1.1% and South Korea retreated 1%. Nasdaq stock futures eased 0.2%, dragged lower by Uber’s 5.7% decline after issuing a downbeat forecast.

The Japanese yen steadied at 155.60 per dollar after falling for three sessions. Japan’s top currency diplomat Masato Kanda said there is no limit for reserves in currency intervention, keeping traders on edge.

Oil prices rose on Thursday, bouncing off two-month lows, with Brent futures up 0.4% to $83.91 a barrel and U.S. crude gaining 0.5% to $79.40 a barrel. Gold prices were 0.3% higher at $2,316.23 per ounce.