AFP - Asian markets mostly fell yesterday, even as data showed China’s economy grew far more than expected in the first quarter after activity resumed following three years of painful zero-Covid measures.
The blockbuster 4.5 percent expansion, helped by above-forecast retail sales last month, revived optimism for an economic recovery in the country after its worst performance in decades last year.

The figures are the first snapshot since 2019 of a Chinese economy unencumbered by public health restrictions, which included months-long city-wide lockdowns that brought large parts of the country to a standstill.
The readings bode well for the world’s second-biggest economy, and soothed some worries after inflation data last week indicated consumer activity remained sluggish. 

However, below-forecast readings on industrial output and fixed asset investment suggested weaknesses remained in the economy and the recovery could be uneven.
“We expect to see higher GDP growth rate in upcoming quarters as a result of the low base from last year, and the annual growth target of five percent should be achievable,” said Chaoping Zhu, at JP Morgan Asset Management.
“That said, some challenges still exist in the economy.”
The Chinese economy remains beset by a series of problems including a debt-laden property sector, global inflation and the threat of recession elsewhere, and geopolitical tensions with the United States.

Craig Erlam at OANDA said: “It’s not just the pandemic that the country is bouncing back from, confidence in the property market has been severely undermined and it will take time to recover.”
Investors also continue to fret over Federal Reserve plans to hike interest rates as officials try to rein in US inflation, with top policymakers seeming to be split over how many more increases are needed.

It is a body comprising companies such as Amazon, Apple, Booking.com, Expedia Group, Google, GoTo, Grab, LINE, LinkedIn, Meta, Rakuten, X and Yahoo.