China grows 10.3 percent in 2010

China's economy accelerated in 2010. AFP/CNA reports:

China said Thursday that its economy grew 10.3 per cent in 2010, marking the fastest annual pace since the onset of the financial crisis and underlining the country's growing might.

Gross domestic product in China rose by 9.8 per cent in the fourth quarter, exceeding analyst expectations, while consumer inflation lost a bit of steam in December as Beijing moved to rein in soaring prices.

Unfortunately, so did inflation.

The country's consumer price index, the main guage of inflation, rose by 4.6 per cent year-on-year in December compared with 5.1 per cent in November, which was the fastest pace in more than two years.

The index rose 3.3 per cent for all of 2010 -- exceeding the government's full-year target of three per cent as food costs soared.

Investors in Asia certainly showed some nervousness on Thursday. From Bloomberg:

Asian stocks fell, with the regional benchmark index sliding the most in almost two months, as Chinese economic reports prompted speculation the country will do more to fight inflation and U.S. earnings disappointed...

The MSCI Asia Pacific Index fell 1.4 percent to 138.61 as of 4:04 p.m. in Tokyo, with about seven stocks declining for each two that rose...

Hong Kong’s Hang Seng Index dropped 1.6 percent, its biggest intraday decline in a month, and the Shanghai Composite Index fell 2.9 percent. Japan’s Nikkei 225 Stock Average retreated 1.1 percent. South Korea’s Kospi Index slipped 0.4 percent, while Australia’s S&P/ASX 200 Index dropped 1.1 percent.