Beijing, China – China released positive economic data today, exceeding expectations in both retail and industrial sectors for the first two months of 2024. Retail sales saw a 5.5% increase, while industrial production rose by 7%, outperforming analysts’ forecasts. However, the unemployment rate in cities remained at 5.3% in February. Meanwhile, real estate investment dropped by 9% year-on-year in January and February, while manufacturing experienced a 9.4% increase during the same period.
The data for January and February in China is typically combined to account for fluctuations due to the Lunar New Year, the country’s largest national holiday. During this time, many businesses shut down for at least a week to celebrate the holiday. The Chinese government aims to smooth out any discrepancies caused by this prolonged break.
In other news, Japanese automakers Nissan and Honda saw an increase in their stock prices after signing a memorandum of understanding in the electric vehicle market. Honda’s shares rose by 2.64%, while Nissan’s climbed by 4.81% during morning trading in Tokyo. The MOU focuses on conducting a feasibility study for a strategic partnership in vehicle electrification and intelligence.
Furthermore, the Nikkei 225 in Japan surged over 2% today, surpassing the 39,000 mark for the first time in 10 days. The rally was mainly powered by manufacturing and healthcare stocks. Notably, financial technology company Rakuten Group saw the most significant gains on the index, with a 7.38% surge in its stock price.
On the other hand, Singapore reported a surprising decline in non-oil domestic exports in February, with a 0.1% decrease year-over-year. This figure was contrary to expectations, as a 4.7% rise was forecasted. The decline was primarily attributed to non-electronic sectors such as food preparations, specialty chemicals, and electrical circuit apparatus, while electronics exports saw growth.
Looking ahead, UBS predicts that companies leveraging technology to disrupt various sectors will have a competitive edge in the next decade. The financial institution identifies key sectors for technological innovation, including artificial intelligence, cybersecurity, healthtech, greentech, and fintech. Industry leaders for 2030 are anticipated to emerge from these sectors, according to a recent UBS report.
In the energy sector, oil prices saw a weekly gain despite a slight dip in crude oil futures. West Texas Intermediate for April fell by 0.27% to settle at $81.04 a barrel, while Brent for May lost 0.09% to settle at $85.34 a barrel. Both U.S. crude and the global benchmark recorded more than a 3.5% increase week to date.
Lastly, consumer sentiment in the United States experienced a minor decline in March, slightly below Wall Street’s expectations. The University of Michigan survey indicated a reading of 76.5, down 0.4 points from February and missing the consensus estimate. Inflation expectations remained steady at 3% and 2.9% for the one- and five-year horizons, respectively. Consumer views have stabilized, reflecting a cautious outlook ahead of the upcoming presidential election in November.