Asian Stocks Struggle Amid Chinese Economic Concerns

Asian stocks saw a slight rise on Tuesday but faced challenges due to concerns over a faltering Chinese economy. Despite a surge in Chinese exports, weak domestic demand and escalating trade tensions with the U.S. weighed heavily on the market. U.S. futures also saw a mix of gains and losses.

Asian stocks inched slightly higher on Tuesday but struggled to sustain an upbeat rally on Wall Street as concerns about a faltering Chinese economy dampened the market mood. Data on Tuesday showed China's exports grew at their fastest since March 2023 in August, suggesting manufacturers are rushing out orders ahead of tariffs expected from a number of trade partners, while imports missed forecasts amid weak domestic demand.

That followed Monday's inflation figures that pointed to still-fragile domestic demand as producer price deflation worsened, keeping alive calls for further stimulus from Beijing to shore up its economy. "It is still uncertain if this momentum can last," said Lynn Song, ING's chief economist for Greater China, of the better-than-expected trade surplus thanks to export growth.

Adding to headwinds for the Chinese economy were escalating trade tensions, after the U.S. House of Representatives on Monday passed a bill that aims to restrict business with China's WuXi AppTec, BGI and several other biotech companies on national security grounds. Hong Kong-listed shares of WuXi AppTec and WuXi Biologics were last down 8.6% and 4%, respectively.

(With inputs from agencies.)