2014.08.0810:05:20UTC+00Chinese stocks on fourth week advance, positive trade data

Chinese stocks recovered in today’s trade as it approaches a fourth straight week on advances following an unexpected export growth. A mainland-traded gauge of shares in Hong Kong cut losses.

The Shanghai Composite Index added 0.3% to 2,194.43 in the closing trade as consumer companies lifted the benchmark index. Hong Kong’s Sang Seng China Enterprises shed 0.4%. Trade date proved to be positive as reports of an increase in overseas shipment by 14.5% in July versus July of last year, occurred.

Strategist at central China Securities, Zhang Gang commented to Bloomberg that investors reacted well to the report as they were previously concerned on the weakening corporate earnings report on the previous trading session and this is a reasonable outcome. Gang adds that the market will continue to fluctuate.

The gauge just reached its longest streak in weekly gains last seen on December 6. This is taken as an indication of monetary easing that quickened government spending that sparked speculation that the nation’s growth is increasing.

The geopolitical tensions in the west slightly affected Asia’s largest economy. US President Barack Obama has given the go signal for a US airstrike on Iraq with the purpose of avoiding genocide while no ground troops will be sent in. The announcement has definitely escalated tensions further with Russia as it retaliated versus the US and European sanctions with the ban on import foods from the western countries. Russian President Vladimir Putin is in the position to raise the turmoil right now if Russia decides to invade Ukraine.