Turning the focus back to China, trade data on Tuesday showed exports unexpectedly picked up pace in August, but imports missed forecasts.
Chinese stocks struggled to catch a bid on Tuesday and fell to a seven-month trough. Meanwhile, underscoring the anaemic consumer demand, the CSI Tourism Index sank to a record low.
It has been a downward trend for Chinese equities for months now, and it’s obvious Beijing has to do a lot more to restore investor confidence in its ailing stock market.
Mounting trade tensions definitely are not helping as well.
The U.S. House of Representatives passed a bill this week that aims to restrict business with China’s WuXi AppTec, BGI and several other biotech companies on national security grounds, sending Hong Kong-listed shares of WuXi AppTec down more than 10% at one point.