China's exports grew at a much faster pace than expected in June, while imports also registered a sharp increase, pointing to resilient external demand and stronger domestic consumption despite lingering global trade uncertainties.
Data released by China's customs authority on Tuesday showed exports rose 27% year-on-year in U.S. dollar terms in June, significantly outpacing the 19.4% increase recorded in May. The reading also exceeded economists' expectations of an 18.2% rise, according to a Reuters poll.
Imports climbed 36% from a year earlier, accelerating from May's 27.4% growth and comfortably beating Reuters' survey forecast of a 24.0% increase.
The stronger-than-expected trade data suggest China's overseas shipments remained robust during the month, while import demand strengthened amid improving domestic activity and higher purchases of raw materials and intermediate goods.
The export performance comes as Chinese manufacturers continue to benefit from resilient global demand in key sectors, even as businesses navigate evolving trade policies and geopolitical uncertainties.
The sharp rise in imports also indicates stronger domestic demand and industrial activity, offering a positive signal for the world's second-largest economy as policymakers seek to sustain growth momentum.
The June trade figures exceeded market expectations for both exports and imports, highlighting the resilience of China's trade sector, as per a Reuters report.
The stronger-than-expected trade data is likely to support investor sentiment towards Chinese equities, particularly export-oriented manufacturers, industrial firms, shipping companies and commodity-related stocks.
Robust export growth signals resilient overseas demand, while the sharp increase in imports points to improving domestic economic activity, a positive backdrop for sectors linked to consumption, manufacturing and raw materials. The upbeat data could also lift broader Asian markets by easing concerns over China's growth outlook.
