A rally in China's stock markets to seven year highs on Monday kept an index of Asian shares near its highest level since September, as weak Chinese trade data hardened expectations for more economic stimulus measures from Beijing.
The Chinese markets' bull run has been fueled by speculative buying on hopes of fresh steps to boost an economy struggling for momentum, with first quarter gross domestic product data due to be released on Wednesday expected to show 7.0 percent growth.
"More stimulus measures are needed in the future," said Nie Wen, a strategist at Hwabao Trust in Shanghai.
Exports contracted 15 percent in March from a year earlier, in a surprise drop that left China with a trade surplus of $3.1 billion last month, much smaller than forecasts for a $45.4 billion trade gap.
"Exports were weak in the Q1, and they won't pick up soon given uncertainties from the U.S., Europe and emerging countries," said Yao Xuekang, an analyst at Essence Securities in Beijing.
Indices Up
MSCI's broadest index of Asia-Pacific shares outside Japan was up about 0.1 percent on the day, moving back toward its highest levels since September touched in the previous week. Hong Kong's benchmark Hang Seng Index added 0.9 percent, approaching last week's seven-year highs on money inflows from mainland China investors who are seeking cheaper shares.
The Shanghai Composite Index was up 1.5 percent and Japan's Nikkei stock average was nearly flat in afternoon trade, after rising above the 20,000 on Friday for the first time in 15 years.