Asian stocks pulled back after US markets dropped on Friday, as encouraging job market data stoked inflation concerns.
Oil prices surged by more than $1 per barrel after President Biden’s administration expanded sanctions targeting Russia’s vital energy sector amid its war in Ukraine. The administration described Friday’s sanctions as the most significant to date against Moscow’s oil and liquefied natural gas industries, which are key to Russia’s economy.
In China, exports in December grew more rapidly than expected as factories hurried to fill orders ahead of potential higher tariffs that US president-elect Donald Trump has threatened to impose. Exports increased by 10.7% compared to the previous year—well above the economists’ forecast of around 7%.
Meanwhile, imports rose by 1% year-on-year, defying expectations of a 1.5% decline, resulting in a trade surplus of $104.84 billion.
Despite the positive export data, the optimistic figures failed to lift regional stock markets. Hong Kong’s Hang Seng fell by 1.3% to 18,820.46, and the Shanghai Composite lost 0.5% to close at 3,154.37. Similarly, Australia’s S&P/ASX 200 slipped 1.5% to 8,166.40, while South Korea’s Kospi dropped 1.2% to 2,486.14.
