Daily FNArena News - International

Chinese inflation may have increased but amidst Western financial turmoil, analysts returning from Chinese visits provide positive reports.

China’s manufacturing activity has contracted for the first time in 12 months according to HSBC.

BlackRock joins a chorus of economists believing fears of a credit bust in China are unfounded.

China is scouring the world, Africa in particular, for access to resources.

In the wake of yet another bank reserve requirement hike, the question arises as to whether China will see more interest rate rises or not.

China’s CPI was up 0.1% in April to provide a 5.3% annual measure, ahead of expectations.

A desperate 50 basis point interest rate rise has hit Indian markets and growth prospects in response to March headline inflation of 9%.

Global issues have not stopped Beijing further tightening monetary policy through another bank reserve increase.

Japanese impact aside, China’s monetary policy is now focused firmly on controlling inflation. And the big culprit is oil. Is there any relief in sight?

DBS remains positive on Asian equity markets but sees potential problems ahead in the next three months. The Australian market is a proxy.