Asian stocks follow Wall St higher, China exports surge

Asian stocks have followed Wall Street higher after Chinese exports rose by double digits

South Korea Financial Markets (Copyright 2021 The Associated Press. All rights reserved.)

Asian stocks followed Wall Street higher on Tuesday after Chinese exports rose by double digits. Investors were looking ahead to U.S. earnings reports that are expected to show strong profits for major banks.

Shanghai Tokyo, Hong Kong and Sydney advanced.

Overnight, Wall Street's benchmark S&P 500 index rose 0.3% to a new high, led by banks, communications and consumer-oriented stocks.

“Wall Street is bracing for a volatile week" as traders decide “whether to bet on growth or cyclicals,” Edward Moya of Oanda said in a report.

The Shanghai Composite Index rose 0.2% to 3,556.27 after Chinese customs data showed export growth in June accelerated to 32.2% over a year earlier.

China led the global recovery from the pandemic but domestic consumer and other economic activity is leveling off. China’s global trade surplus swelled 11% over a year earlier to $51.5 billion. The politically sensitive surplus with the United States expanded 11% to $32.6 billion.

The Nikkei 225 in Tokyo gained 0.5% to 28,720.09 and the Hang Seng in Hong Kong added 1.9% to 28,027.48.

The Kospi in Seoul advanced 0.7% to 3,269.43 and Sydney's S&P-ASX 200 was 0.2% higher at 7,348.20.

India's Sensex opened up 0.5% at 52,626.80. New Zealand, Singapore and Bangkok gained while Jakarta retreated.

On Wall Street, the S&P rose to 4,384.63. The Dow Jones Industrial Average added 0.4% to 34,996.18. The Nasdaq composite gained 0.2% to 14,733.24.

The indexes have hit multiple highs lately in choppy trading.

Expectations for corporate profits are high as companies release quarterly results, led by Wall Street banks on Tuesday.

Corporate earnings are expected to surge 64% from a year earlier, according to FactSet. That would be the biggest year-over-year growth since 2009 in the aftermath of the global financial crisis.

Stocks have risen sharply in the past year on expectations corporate profits would rebound once the pandemic ends. Without strong profits, it will be difficult to justify high stock prices and record market valuations.

In energy markets, benchmark U.S. crude rose 27 cents to $74.37 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 46 cents on Monday to $74.10. Brent crude, the price basis for international oils, added 22 cents to $75.38 per barrel in London. It 39 cents the previous session to $75.16 a barrel.

The dollar gained to 110.43 yen from 110.34 yen. The euro advanced to $1.1865 from $1.1858.