China’s exports rose at the slowest pace in almost two years in October as Europe’s deepening debt crisis crimped demand, adding pressure on policy makers to support growth in the world’s second-biggest economy.
Overseas shipments rose 15.9 percent from a year earlier, customs bureau data showed today. The trade surplus was $17 billion, lower than all 24 estimates in a Bloomberg News survey. Imports climbed a more-than-forecast 28.7 percent.
Asian stocks slumped after a jump in Italian bond yields fanned concern Europe’s currency union will unravel and cause a recession in China’s largest export market. Chinese data yesterday showing inflation slowed, home sales fell and industrial output cooled have added to the case for the government to ease credit controls and cut taxes.
“The weakness in exports is consistent with the external slowdown and we expect further declines in the growth rate,” said Ken Peng, a senior economist with BNP Paribas SA in Beijing. “Domestic demand growth is weakening so the strength in imports is likely temporary and we may get a sharp downturn next month.”
The MSCI Asia Pacific Index declined 3.1 percent at 3:16 p.m. in Tokyo, poised for its biggest drop since Sept. 22. The benchmark Shanghai Composite Index fell 1 percent to 2,498.33 at 2:07 p.m. local time. The yuan was trading 0.1 percent lower at 6.3451 per dollar in Shanghai.
