David Fuller's view This article from Bloomberg is interesting. The data certainly raised eyebrows and the nature of the rally to date suggests that there was some short covering, as is usually the case as markets recover from important lows.


This additional article, also from BBG: China Economic Data Reliable If Flawed, Stanford's Lazear Says - supports the improving trend of the data. Ed Lazear says that it is less accurate than what is reported by the USA, but he thinks the error factor is approximately a half to one percentage point, either way.

Interestingly, Asia's two biggest economies, China and Japan, both have performing stock markets at the same time, something we have not seen since the rebound in 2009, on expectations for stronger economic activity. Moreover, in my opinion Shinzo Abe has embarked on policies which have a better chance of reviving Japan's economy after so many years of underperformance. This should be bullish for Asia generally. However, China and Japan are rivals and relationships between them, which have simmered on occasion since WWII, have deteriorated more recently. Hopefully, both countries will focus on their respective economic development and try to improve their relationship. However, we have yet to see evidence of detante and a stronger Japan over the next few years would almost certainly boost its military capability, as China has done.