China's Quickening Economic Growth Fans Speculation Interest Rates to Rise

[Dover]

China’s economic growth accelerated to 9.8 percent as industrial production and retail sales picked up, sending stocks lower from Asia to Europe on concern Chinese policy makers will raise interest rates and stem the expansion.

The expansion exceeded the 9.4 percent median estimate in a Bloomberg News survey of 22 economists and compared with a 9.6 percent annual gain in the previous three months, a statistics bureau report showed. Consumer-price inflation eased to 4.6 percent in December. Citigroup Inc. and Credit Suisse Group AG say inflation may peak at as much as 6 percent in the first half.

“If the economy keeps growing at the current pace, inflation will remain alarming,” said Liu Li-Gang, a Hong Kong- based economist at Australia and New Zealand Banking Group Ltd. Beside raising lenders’ reserve requirements, the central bank should boost benchmark rates, he said.

..cont'd

http://topics.bloomberg.com/asia/

----

Stocks Drop on China Rate Concern; U.S. Futures Pare Loss on Jobless Data

Stocks fell, with the benchmark index for emerging markets dropping the most in six weeks, and copper declined as China’s accelerating economy fanned concern interest rates will rise. U.S. index futures pared declines after jobless claims fell more than estimated. ...cont'd

http://www.bloomberg.com/news/2011-01-20/asian-stocks-fall-on-goldman-sachs-profit-china-growth-dollar-advances.html?cmpid=