Research Team at TDS, notes that China’s Feb trade surplus narrowed from US$63b to US$33b via a sharp fall in exports (mkt –14.5%/yr actual -25%/yr). Key Quotes “Imports were softer too, -14%/yr (mkt was –12%). Although the timing is distorted by the Chinese New Year shutdown, the weak report grabbed the market’s attention, as it possibly signals a slowdown in global and local economic activity. JPY: Q4 Final GDP fell –0.3%/qtr to be down –1.1%/yr, both better than market forecasts, but it doesn’t change the outlook for Japan’s anaemic recovery. Private consumption remains a drag, -0.9%. Bloomberg’s GDP tracker forecasts a –1.2% contraction in Q1, and such an outcome would mark the 2nd technical recession since Abe returned to office in Dec 2012.” For more information, read our latest forex news.