Asian shares were on the defensive on Wednesday after data showed that China slipped into deflation in July, a negative sign for the global growth outlook although it could serve as a damper on global inflationary forces.

Oil prices eased in Asian morning trade on Wednesday as concerns over slow demand from top crude importer China grew after bearish trade and inflation data, outweighing fears over tighter supply arising from output cuts by Saudi Arabia and Russia.

The dollar remained on the front foot in Asia on Wednesday, holding on to overnight gains against major peers as investors sought the safety of the currency amid risks from a floundering Chinese economy and downgrades for U.S. banks.

China’s key imports and exports shrank more than expected in July amid worsening global and domestic demand, although the country’s trade balance still grew past expectations for the month. 

Natural Rubber (NR) production increased by 23.8 per cent in June 2023 (29,867 tonnes) as compared to May 2023 (24,126 tonnes). Year-on-year comparison showed that the production of NR decreased by 3.9 per cent (June 2022: 31,083 tonnes). Production of NR in June 2023 for Malaysia was mainly contributed by smallholders sector (85.9%) as compared to estates sector (14.1%). 

Oil prices rose in Asian trade on Tuesday, recovering a measure of overnight losses as bets on tightening global supplies helped somewhat offset concerns over potential weakness in demand for the remainder of the year.