Both China's imports and exports in July 2013 showed a rebound as they increased above expectation. Exports of the world's second-largest economy rose 5.1 percent (YoY), while imports surged 10.9 percent (which suggest improving domestic consumption). These results led to most Asian markets being up on Thursday (08/08). China's economy has been slowing down amid weak global demand and efforts to avert a credit boom. In 2012, the country's economy expanded 7.8 percent, the slowest pace in 23 years.
The trade surplus of China narrowed to USD $17.8 billion.
China's inflation rose 2.7 percent in July, and which is still below the government's 3.5 percent target for full year 2013. Food prices in China rose five percent. Pressure for higher prices in China have been relatively weak because of weak demand and more supply than demand in many industries. The July inflation result provides room for the implementation of more fiscal stimulus, while avoiding monetary tightening.
Only Japan's Nikkei fell on Thursday, partly because of continued concerns about the possible end to the Federal Reserve's quantitative easing program. The Nikkei fell 0.7 percent to 13,727.06 after Japan's central bank decided not to expand its massive monetary stimulus.