Japan confirmed the intention to continue stimulus program, while China’s exports showed a positive trend
Today, Yukata Harada, a member of the Monetary Policy Committee of the Bank of Japan, confirmed the intention, in the event of the need to continue smoothing. He said that there are still potential risks that threaten the economy slowdown, including the decline in China and other developing countries, the impact of US monetary policy to financial markets and unsecured debt issues in Europe. «If these risks materialize, the Bank of Japan will take additional smoothing measures, without thinking», — assured Harada. According to him, it is too early to draw conclusions about the effectiveness of the negative rate policy, but he is convinced that, as a whole, stimulus program brings the desired result. In China, there is another sign of stabilization -export economy grew in March for the first nine months by 11.5 percent in annual terms, rising for the first time since June, and demonstrating the highest percentage growth since February 2015, as shown by the data of the General Customs Administration of China today. Experts pointed out that the data strongly influenced by the base effect and seasonal distortions due to the celebration of the Lunar New Year, so they do not fully reflect the situation of strengthening global demand. Imports continued to fall, but not as much as expected — a decline of 7.6 percent. However, the volume of imports of most principal commodities, particularly copper and iron ore, have increased significantly. As a result, China’s trade surplus reached 29.86 billion US dollars, compared with a forecast of 30.85 billion. «I think we need to focus on than-expected import figures, as this means that domestic demand is also recovering thanks to infrastructure investments and real estate sector rise,» — said Ma Xiaoping of HSBC. Foreign investors are also encouraged by trade data. The Australian dollar after the data crossed the level of 77 US cents, and Australian shares gained more than 1.5 percent.