Econintersect: China’s National Bureau of Statistics said the world’s second-largest economy grew at 7.6% for the first half of the year. This appears to be in line with expectations but has renewed trader’s expectations that China would partake in a new round of stimulus measures.
“The fact the numbers are not as bad as people had feared gives the market a boost,” Francis Lun, managing director at Lyncean Securities in Hong Kong, told Dow Jones Newswires. “Also, the government is expected to further introduce monetary policies (such as a cut in banks’ reserve requirements).”
AFP News also reported the speculation that additional stimulus measures were coming:
“The China stimulus story looks all the more apparent, boosting commodities,” said Jack Pollard, an analyst at Sucden Financial brokers in London.
To read more on China Stimulus:
Econintersect: In China the National Bureau of Statistics has reported that the county’s gross domestic product (GDP) expanded 7.6 % in the second quarter from a year earlier. That compares with growth of 8.1 % in the first quarter and means that China’s economy expanded at 7.8% year-over-year in the first half year. China’s economy is slowing down at the same time both Europe and the U.S. are having similar problems. In fact, part of China’s slower growth may be directly attributable to the softness in other major economies.
China’s growth rate slowed for a sixth successive quarter to its slackest pace in more than three years, highlighting the need for more policy vigilance from Beijing even as signs emerge that action taken so far is beginning to stabilise the economy.
Commodity prices, which fell during most of the past week, rallied strongly Friday on speculation of more China stimulus measures to boost demand in the Asian powerhouse nation.
World oil prices climbed Friday as traders speculated that the Chinese government could implement more stimulus measures to combat weaker economic growth.
Additional economic news from China:
SHANGHAI (Reuters) – China will provide 31.87 billion yuan ($5 billion) in subsidies for the renovation of rural households this year, the state-run Xinhua News Agency said on Saturday.
Amid a drumbeat of disappointing retail news from China, Daphne International Holdings of Taiwan, one of the largest women?s footwear retailers in the mainland, warned in a statement on Friday that ?intense promotional efforts? and rising production costs would likely contribute to a ?low single-digit? percentage point fall in the company?s operating profit margin for the first half of the year.
In recent months, China has made it harder for American investors to check the legitimacy of their Chinese investments.
A report on Friday by Colliers International may lend support to a recent assertion by big commercial real estate developer Soho China of Beijing that its share are underpriced.
The global PMI hit a three-year low in June, suggesting the pace of economic growth slumped to an annual rate close to 1%. Manufacturing contracted for the first time since last November and growth slowed to near-stagnation in services. Both the Eurozone and Japan were found to have contracted during the month while growth slowed in the US, UK and China.
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Bad news from South Korea, Singapore and China this week failed to rattle investors’ confidence in the region, despite fears that Europe’s economic contagion is spreading rapidly to the East.
China’s unusually calm reply to the Obama administration’s complaint to the World Trade Organization about the tariffs puzzled trade analysts.
Equities have snapped out of a seven-day slump following news that economic growth in China slowed rather than collapsed in the second quarter. A well–received bond auction in Rome is also helping to shore-up sentiment about the Eurozone, helping the euro recover from Thursday’s two-year lows.
Asian shares made modest gains Friday after China said its economy slowed in line with expectations, quashing fears data would show a “doomsday” scenario of the country heading for a hard landing.
The slowdown added to worries about the ability of the world’s second-largest economy to offset low growth elsewhere.
Concerns about global economic growth are being balanced against better news from the Eurozone, leading to mixed market trends on Tuesday.
Where there’s muck ELSEWHERE in the developing world, towns grow before the infrastructure is quite ready to support them. Things are different in Shenzhen, China’s original Special Economic Zone (SEZ), a stone’s throw from Hong Kong.The subway station at Qianhai bay, on the city’s west coast, is spick and span, with a full complement of signs, announcements and billboards, including one for a performance by the BBC National Orchestra of Wales, sponsored by Classy Kiss milk…