Asian Stocks Soar on Chinese Data, Hope For Stimulus
January 17, 2012
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Economic Update: China GDP, Industrial Output, and Retail Sales
China’s GDP grew at an annual rate of +8.9% in the fourth quarter. This was above the Reuters consensus estimate of +8.7%.
The Q4 rate was the weakest pace in 2.5 years and represents a continued slowing in the rate of growth. Chinese officials fear that the slowdown will continue to sharpen in the coming quarter.
The Chinese economy had grown at a +9.1% rate in Q3 and a 9.5% rate in the second quarter of 2011.
Analysts believe that the slowing growth rate will cause the government to take more aggressive stimulative measures in the months ahead.
In related economic news, Industrial Output rose by +12.8% in December, which was above the consensus for +12.2%.
Retail Sales grew by +18.1% on a year-over-year basis in December, which was above the consensus for +17.2%.
Asian stock markets soared on the hope for further stimulative growth measures including an easing of monetary policy. Shanghai soared +4.18% while the Hang Seng gained +3.24% and Japan’s Nikkei rose +1.05%.
iShares China - Last 5 Years
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