In This Article:
(Updates prices throughout, adds analyst comment, Chinese data)
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* MSCI ex-Japan skids 1 pct, Tokyo on public holiday
* China's Dec exports, imports fall, miss forecasts
* Chinese shares in red, E-Minis stumbles too
By Swati Pandey
SYDNEY, Jan 14 (Reuters) - Asian shares and U.S. stock futures skidded on Monday after a shock contraction in Chinese exports pointed to deepening cracks in the world's second-biggest economy and raised fears of a sharper slowdown in global growth and corporate profits.
Latest data from China showed imports fell 7.6 percent year-on-year in December when analysts had predicted a 5 percent rise while exports unexpectedly dropped 4.4 percent, confounding expectations for a 3 percent gain.
The disappointing numbers reinforced fears U.S. tariffs on Chinese goods were putting a big strain on China's already cooling economy.
The Australian dollar, a key gauge of global risk sentiment and a liquid proxy for the Chinese yuan, toppled from Friday's one-month peak of $0.7235 to $0.7186 after the data.
MSCI's broadest index of Asia-Pacific shares outside Japan extended losses to notch a 1 percent decline from Friday's 1-1/2 month top, with Chinese and Hong Kong shares the biggest losers.
Liquidity was generally expected to be light during Asian hours as Japan was on public holiday.
Chinese shares were in the red, with the blue-chip index down 0.8 percent. Hong Kong's Hang Seng index stumbled 1.4 percent while Australian shares eased 0.2 percent after starting firm.
E-minis for the S&P 500 declined 0.8 percent, in an indication of heightened risk aversion. "The data was very weak and it just adds to the incentives for the Chinese side to strike a trade deal with the U.S. in the coming weeks," said Ray Attrill, forex strategist at National Australia Bank.
"You could argue that the worse the numbers are the more incentive it provides to resolve the dispute."
Beijing and Washington have been in talks for months now to try and resolve their bitter trade war, with no signs so far of any substantial progress in negotiations.
"It also amplifies the extent to which they (Chinese policymakers) have to provide stimulus for the domestic economy," Attrill added.
In the wake of the trade dispute, China's policymakers have already pledged to step up support this year, following a raft of measures in 2018 including fast tracking infrastructure projects and cuts in banks' reserve requirements and taxes.
DARK CLOUDS
On the earnings front, U.S. banks are in sharp focus with quarterly results from Citigroup due Monday followed by JPMorgan Chase, Wells Fargo, Goldman Sachs and Morgan Stanley later in the week.