Live news: China trade lags in June as global demand falters

China’s exports and imports both contracted faster than expected in June, adding to mounting trade pressures on the world’s second-largest economy.

Official data showed that exports fell 12.4 percent year-on-year in dollar terms, while imports fell 6.8 percent. In May, exports and imports fell by 7.5 percent and 4.5 percent, respectively.

China’s exports rose during the pandemic, but this year it faces weaker international demand as global interest rates rise.

Trade headwinds along with a weak economic recovery since Covid-19 controls were lifted in the country at the start of the year and persistent weakness in the real estate sector prompted calls for more stimulus.

Asian markets rallied on Thursday after weaker-than-expected June CPI figures from the US reduced pressure on the Federal Reserve to increase interest rates.

China’s CSI 300 and South Korea’s Kospi rose 0.7 percent, while Japan’s Topix rose 0.8 percent and Hong Kong’s Hang Seng rose 2.1 percent.

Beijing pledged support for tech platforms on Wednesday, signaling that the crackdown on the sector is coming to an end.

The moves tracked strength in US markets, with the S&P 500 rising 0.7 percent on Wednesday. The core consumer price index in the United States came in at 4.8 percent, less than the 5.0 percent expected by economists polled by Reuters.

South Korea: Economists expect the BoK to keep interest rates at 3.5 percent for the fourth consecutive meeting.

Meetings: The EU-Japan Summit begins in Brussels, with the presence of European Council President Charles Michel, European Commission President Ursula von der Leyen, and Japanese Prime Minister Fumio Kishida.

Thailand: Parliament will vote for a new prime minister. Peta Limjarunrat, whose progressive Movement Forward party won the general election in May, still faces hurdles to replacing the military-backed government, including questions about a possible violation of election rules.

Markets: Futures rose in Hong Kong Thursday morning. Stocks and US Treasury bonds rose on Wednesday while the dollar fell after inflation fell more-than-expected in June, easing pressure on the Federal Reserve to continue raising interest rates. The Standard & Poor’s 500 index closed up 0.7 percent, while the Nasdaq Composite rose 1.2 percent.

Disney has extended CEO Bob Iger’s contract through the end of 2026, prolonging what was supposed to be a short-term stay for the CEO who returned to the entertainment giant last November.

Iger, who led Disney for 15 years in his first stint as CEO, replaced his handpicked successor Bob Chapek, who had only lasted 33 months in a difficult period.

He was tasked with finding a new successor before he departs at the end of 2024, but Disney said Wednesday that its board of directors voted unanimously to extend Iger’s term by two years.

President Joe Biden said Wednesday that the United States is considering sending long-range missiles to Ukraine after France and the United Kingdom sent similar systems, a potentially significant shift as Washington changes risk calculations in Ukraine as the war drags on.

Kiev has long sought weapons to better penetrate Russian defences, but Washington has held back its fears of Russian escalation. France announced this week that it would send such weapons and the UK has already sent Storm Shadow missiles.

“They already have the equivalent of ATACMS now. What we need more than anything are artillery shells,” Biden said, using the long-range missile name as he boarded a plane from Vilnius, where he was attending a NATO summit, for Helsinki.

President Joe Biden reiterated his assurances that the United States is committed to supporting Ukraine for the long term at the end of a sweeping speech that capped his visit to Lithuania for a NATO summit.

“We will not hesitate, we will not hesitate,” he said. “I mean this. Our commitment to Ukraine will not wane. We will stand up for liberty and liberty today, tomorrow and for as long as it takes.”

German chemical company BASF on Wednesday cut its full-year forecast, forecasting a slowdown in global consumer demand is expected to dampen sales and earnings more than previously expected.

The world’s largest chemical producer now expects sales of between €73 billion and €76 billion, down from the previously estimated range of €84 billion to €87 billion. Adjusted earnings are expected to be in the range of €4 billion-€4.4 billion compared to previous estimates of €4.8 billion-€5.4 billion.

BASF said its preliminary sales in the second quarter were a quarter lower than a year earlier. Adjusted earnings are down 57 percent from a year ago.