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Jun 11, 2012 9:03 AM GMT+0800 China s exports rose in May at more than double the pace analystsestimated while industrial output and retail sales trailedforecasts, signaling that last week s interest-rate cut was aimedat countering a domestic slowdown. Overseas shipments climbed 15.3 percent from a year earlier, thecustoms bureau said yesterday, exceeding all 29 estimates in aBloomberg News survey. Industrial output gained by less than 10percent for a second month and retail sales increased the least inalmost six years excluding holiday-month distortions, statisticsbureau reports showed June 9. China s trade resilience signals Europe s crisis has yet to sparka collapse in world commerce on the scale of 2008, even as Spain sbanking woes threaten to deepen the trauma. Stronger exports andimports also support the case for Premier Wen Jiabao to adopt amore restrained stimulus than the credit boom officials unleashedin 2008, which stoked a property bubble. The better-than-expected trade data should help alleviate ongoingconcerns of a sharp growth deterioration in the near term, saidSun Junwei, a Beijing-based economist with HSBC Holdings Plc. Thekey to securing a soft landing pivots on reviving domestic demandand that will necessitate more stimulus but it will be moremeasured than in 2008 and monetary policy won t be easedexcessively. The government may boost tax cuts and speed up spending on publicworks to ensure growth of more than 8.5 percent in the second halfof the year, the bank says. Further reductions in interest ratesare possible and reserve requirements may be cut four moretimes this year to spur lending, according to Sun. Spain Rescue China s stocks had their biggest slide this year last week, afterthe rate cut heightened concern the nation s economic slowdown isdeepening. Equities rallied in Asia today after a weekend agreementin Europe to provide Spain with as much as $125 billion to bail outits banks. The MSCI Asia Pacific Index was up 1.2 percent at 9:51a.m. in Tokyo. Trade data from Singapore today also showed resilience, withnon-oil domestic exports advancing 3.2 percent in May from a yearbefore, compared with the median estimate for a 3 percent gain.Malaysia is projected to report an increase in industrialproduction for June. In France, a report is forecast to show industrial production fellfor a second month in April from March. In Italy, the nationalstatistics institute will confirm last month s preliminary reportthat the economy contracted 0.8 percent in the three months throughMarch from the previous quarter, according to economists in aBloomberg survey. Rate Cut China on June 7 announced the first rate reduction in more thanthree years to spur demand. The 25 basis-point move took one-yearborrowing costs to 6.31 percent and the one-year deposit rate to3.25 percent. China s economic growth eased to 8.1 percent in the first quarterfrom a year earlier and may slow to 7.7 percent in the three monthsthrough June, according to JPMorgan Chase & Co. The bank alsopredicts full-year expansion of 7.7 percent, the least since 1999.Wen in March set a 2012 growth target of 7.5 percent, down from an8 percent goal in place since 2005. Inflation in May eased to 3 percent, the statistics bureau said,the lowest reading in two years and below the government s 2012target of 4 percent for the fourth month. The decline will offer more room for policy easing, said Lu Ting,head of Greater China economics at Bank of America Corp. in HongKong. He expects the government to start and speed up more projectsand make financing easier by cutting reserve requirements andinterest rates, approving more corporate bond issuance and liftinglending restrictions. Bank Loans The People s Bank of China may release money supply and newlending figures for May as soon as today. M2, the broadest measureof money supply, probably rose 12.9 percent while new yuan loanswere 700 billion yuan ($110 billion), up from 681.8 billion yuanthe previous month and 551.6 billion yuan a year ago, Bloombergsurveys showed. China s statistics bureau also reported fixed-asset investmentexcluding rural households rose 20 percent in the first fivemonths. That was the weakest gain for a January-May period since2001, according to previously released data. Industrial output increased 9.6 percent in May from a year earlierand retail sales grew 13.8 percent. Home-appliance sales growthslid to 0.5 percent compared with a 15.4 percent gain a year ago,after the government ended incentive programs. Consumer Subsidies Gome Electrical Appliances Holding Ltd. (493), China s second-biggest electronics retailer, said May 25 its first-quarter netincome slumped 88 percent from a year earlier as demand droppedwhen the programs ended. President Wang Jun Zhou said new subsidiesannounced last month for energy-saving appliances will be particularly important to boost television and air- conditionersales. Customs data showed a trade surplus of $18.7 billion last month,more than economists estimated, while the median forecast forexport growth was 7.1 percent. Imports rose 12.7 percent from ayear earlier compared with the median estimate for a 5.5 percentgain. Crude oil purchases climbed to a record and iron ore importswere the highest in three months. This shows it s not all doom and gloom, said Song Seng Wun, aneconomist with CIMB Research Pte. in Singapore. Growth momentummay be slowing, but it s not about to crash. I am an expert from medical-examgloves.com, while we provides the quality product, such as Polyethylene Disposable Gloves , Nitrile Exam Gloves Manufacturer, Sterile Surgical Gloves,and more.
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