China's exports for February surged past analyst estimates sparking hopes that global demand may be recovering.

Specifically, the motor of the global economy reported a 21.8% jump in exports, well above the 10.1% consensus estimate.

In January, exports had risen 25.0%. Nevertheless, data for January or February are often distorted depending on in which month the Lunar New Year falls. Combined data for the two month period showed growth of 23.6%, compared to the 17.6% forecast.

Imports, on the other hand, missed expectations, registering their largest drop in the last 13 months. Specifically, these fell 15.2%, compared to the forecast for an 8.8% decrease. Imports had surged in January by 28.8%. The combined data for both months registered a 5% increase compared to analyst forecasts of a 10% rise.

Economists at Nomura expressed surprise at the robustness of the figures released this morning, hinting that they may be distorted by 'capital inflows,' as corporations attempt to bypass capital controls.

In any case, the data are hard to reconcile with that from other regional heavyweights such as South Korea or Taiwan, they remark, and only add to the case for policy tightening "on the margin," given as well that monetary policy is increasingly driven by domestic data and that has not been brilliant of late.

All the more reason, in any case, why tomorrow´s raft of economic data will closely scrutinised.

JM

Related share prices