Intellasia News Services -- HK exports increase more than estimated 26.7pct, eighth monthly gain

HK exports increase more than estimated 26.7pct, eighth monthly gain
Source: 29-JUL-2010 Intellasia | Bloomberg
29 Jul, 2010 - 7:00:00 AM
Hong Kong's exports rose a more- than-estimated 26.7 percent in June from a year earlier, buoyed by demand within Asia.

Shipments rose to HK$267.6 billion ($34.4 billion) after gaining 24.4 percent in May, the government said today on its website. That was more than the 22.8 percent median estimate in a Bloomberg News survey. None of the seven economists forecast such a large gain.

Today's report shows that Hong Kong, like regional peers such as South Korea, Singapore and Taiwan, is reaping the benefit of faster Asian growth that's fuelling trade in the region. Gains may moderate should efforts by European governments to reduce their debt burdens weigh on global demand.

"There's still considerable momentum in the Asian region to support Hong Kong's trade and economy," David Cohen, a Singapore-based economist at Action Economics, said before the data were released.

Shipments to Asia gained 27.4 percent from a year earlier, while those to China, the main destination for goods shipped through Hong Kong, rose 26.2 percent.

US demand also provided a boost, with shipments to that market climbing 29.4 percent, more than the 24 percent gain in May.

China's export growth may slow in the second half on Europe's woes, the gradual end of post-crisis restocking by businesses, and monetary tightening in emerging economies such as India and Brazil, the nation's commerce ministry said July 20.

Imports climbed a more-than-estimated 31 percent from a year earlier last month, leaving a trade deficit of HK$30.6 billion ($3.94 billion). The median forecast of seven economists was for a 25.2 percent increase in imports.

Hong Kong's economy grew at its fastest pace in four years in the first quarter as exports and retail spending rebounded from the global crisis. The economic results for April-June are due August 13.

Exports may be "losing steam," with the effects of the European debt crisis and a slowing US economy yet to be fully felt, Joanne Yim, chief economist at Hang Seng Bank Ltd in Hong Kong, said before today's data.

http://www.bloomberg.com/news/2010-07-27/hong-kong-exports-increase-more-than-estimated-26-7-eighth-monthly-gain.html