Asian countries show signs of recovery, stronger export trends

Greg Gibbs, Director at Amplifying Global FX Capital, said that signs of recovery broaden in Asia. Asian countries are showing stronger export trends as industrial production recovers in advanced Asian countries.

China’s Caixin services PMI rose to 53.5 in Dec, a high since July-2015 (17 months). China's official non-manufacturing PMI dipped in Dec to 54.5 from a high in November since June 2014, but was still a relatively robust result.

Taiwan exports rose 12.1 percent y/y, highest since Jan-2013. Orders rose 7.0 percent y/y in November, above 5.0 percent expected. Indonesia’s exports surged 21.3 percent y/y in November, supported by higher commodity prices rebounding from a low base in late 2015.

Thailand’s exports rose over 10 percent y/y in November, almost four year high. Vietnam’s exports rose 8.6 percent y/y in December a 12 month high. Singapore’s non-oil domestic export growth rose to 11.5 percent y/y in November, equaling its previous high since March 2015.

Industrial production was seen recovering in major advanced Asian countries. Industrial production rose at the highest annual rate in Taiwan in November (8.8 percent y/y) since Oct-2014, in Korea (4.8 percent y/y) in at least three years, and Singapore (11.9 percent y/y) since Mar-2014.