Over the weekend, China reported that its inflation rate accelerated in June. Investors were undaunted by the news though. From Bloomberg today:
China’s stocks rose, spurring the biggest gain for the benchmark index in a week, on speculation inflation will decelerate the rest of the year and the nation’s economic growth may sustain earnings...
“The June inflation number had already been widely expected by the market and its impact will be minor,” said Ling Peng, chief strategist at Shenyin & Wanguo Securities Co. in Shanghai. “Inflation may have already peaked.”
The Shanghai Composite, which tracks the bigger of China’s stock exchanges, rose 4.92 point, or 0.2 percent, to 2,802.69 at the 3 p.m. close. The CSI 300 Index added 0.1 percent to 3,113.21...
Consumer prices rose 6.4 percent in June, mainly driven by a 14 percent gain in food costs, the statistics bureau said on its website over the week-end. The pace exceeded the 6.2 percent median estimate in a Bloomberg News survey of 19 economists. Producer prices gained 7.1 percent, the bureau said. That compared with the median estimate of 6.9 percent.
China also released trade data over the weekend.
Exports climbed 17.9 percent in June, the least since December, the customs bureau said on its website yesterday. Imports jumped 19.3 percent, the weakest expansion since gains resumed in November 2009. The trade surplus widened to $22.3 billion in June, the highest level in seven months.
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