Recently released China's trade data indicates a modest rebound instead of a downturn that was anticipated by markets. This will help alleviate concerns of the economic slowdown of the nation and help global risk sentiment. The strong export and import data will also assist the country in stopping the CNY's decline and capital outflows in the short run.
China's imports are recovering strongly and help reduction of inventory, which was the main reason for the economic slowdown. In the beginning of 2014, imports had declined sharply; however, they are rebounding. This is good news for the nations worldwide, particularly for other emerging countries, such as Brazil, that have high exposure to China.
Today's exports and imports data for China indicates a gradual rebound in the nation as housing construction improves during the year, inventory depletion runs its course and as public investment is being helped by modest monetary and fiscal stimulus.
