Asian markets were mostly higher on Tuesday as hopes grew for a global economic rebound despite surging coronavirus cases in many places.

China reported its exports rose nearly 31 per cent in March, in line with expectations but weaker than the 60 per cent growth seen in the first two months of the year.

The rising trade activity reflects higher demand in overseas markets even as some countries reimpose precautions to counter rising numbers of new infections.

OANDA’s Asia-Pacific analyst Jeffery Halley said in US Dollar terms, China’s trade surplus fell to $US13.8 billion versus an expected surplus of $US52 billion.

Japan’s benchmark Nikkei 225 gained 1 per cent in morning trading to 29,832.50. South Korea’s Kospi gained 0.8 per cent to 3,159.49.

Hong Kong’s Hang Seng surged 1.2 per cent to 28,779.09, while the Shanghai Composite was little changed at 3,413.29.

Robert Carnell, Regional Head of Research Asia-Pacific at ING, expects trading in the region to be tentative as investors await data that will help assess the recovery from pandemic damage.

Apart from the Chinese trade data, “Asian markets, like others, will be on tenterhooks pending the release of important March US inflation figures later today,” he said in a report.

Earnings season is approaching and corporate results may indicate the direction of future growth as nations gradually emerge from the damage set off by the pandemic.

JPMorgan Chase and Wells Fargo report on Wednesday, while Bank of America and Citigroup report on Thursday.

Worries remain about recent surges in COVID-19 cases, including Brazil and Michigan state in the US. Earlier this week, Japan, which trails the world in the vaccine rollout, called for government-backed measures to curb the recent surge in the sickness in some areas.

In Thailand, authorities are warning of a potential explosion in cases after many new infections were found among people who frequent clubs and other entertainment venues.

Reuters