Markets Rebounding on China Data

“It seems Asia has had a reassessment, and calmer heads have prevailed as we close out the week,” Chris Weston of Pepperstone Group Limited said in a commentary.

Defying tariffs, China’s trade surplus with the United States grew to a record $34.1 billion in September, customs data showed. This marked a jump of 13 percent over a year earlier.

Its exports to the United States rose to $46.7 billion although growth was slower than in August. Imports of U.S. goods grew too, but at a slower pace than before. On the overall, China’s global exports picked up and its imports steadily increased.

Asia’s rebound followed another rout on Wall Street where indexes tumbled for a second straight day on worries that rising interest rates and trade tensions could hurt global growth.

A decline in the yield on 10-year Treasury yields hit bank stocks, while technology and retail companies stumbled. The benchmark S&P 500 index started the day with gains, but ended losing 2.1 percent to 2,728.37, its lowest close in three months and sixth straight loss.

The Dow Jones Industrial Average dropped 2.1 percent to 25,052.83 and the Nasdaq composite gave up 1.3 percent to 7,329.06. The Russell 2000 index of smaller-company stocks fell 1.9 percent to 1,545.38.

The U.S. Treasury will soon release a currency report that some analysts suggest might change the official stance on China’s exchange rate policy.

Reports that U.S. Treasury Secretary Steven Mnuchin was advised against labeling China as a currency manipulator — a status that could trigger penalties — have eased tensions, Stephen Innes of OANDA said.

Despite “a semblance of sanity returning,” the markets are ultimately “not out of the weeds,” he added.

Officials at the IMF-World Bank annual meeting, held on the Indonesian island of Bali this week, have called on the

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