By Myra P. Saefong & Chris Oliver, MarketWatch
TOKYO (MarketWatch) — Chinese economic data released Friday reinforced the growing perception of an economy picking up steam, with retail sales and industrial production for the month of May coming in stronger than expected, while new bank lending continued at a torrid clip.
Friday’s data capped a week of relatively robust news that dispelled some of the scepticism surrounding China’s recovery, with the world’s third-largest economy now on track to meet its growth targets this year, analysts said.
"Most likely industrial production growth will trend upward, supporting our 8% gross domestic product growth call for 2009," wrote Merrill Lynch economist Ting Lu in a research note Friday.
In March, Chinese Premier Wen Jiabao also said the country would expand its economy 8% this year, although it’s not clear that a formal growth target has been set.
Industry reviving
Industrial output climbed 8.9% in May, the National Bureau of Statistics said Friday. The result was above expectations for a 7.8% rise, as reported by Dow Jones Newswires, but it matched exactly forecasts by the 21st Century Business Herald and Ming Pao newspapers, whose projections Merrill Lynch said appeared to be "whispered" leaks of the data. See full story on so-called ‘whispered numbers.’
The more upbeat figures follow a fall of 26.4% in China’s exports in May from a year earlier and an import decline of 25.2%, according to Statistics Bureau data released Thursday. Both figures marked their seventh-straight on-year decline. See story on Chinese trade.
"While improving this month, China’s industrial production growth data has been in contrast with expansion in the Purchasing Managers Index," said J.P. Morgan’s China equities chief, Jing Ulrich.
"China’s May PMI of 53.1 represented a third-successive month of expansion in the manufacturing sector, suggesting that managers are cautiously optimistic in their outlook," he said.
The Statistics Bureau also reported Friday that retail sales were up 15.2% in May, compared to a 14.8% rise in April.
Bank lending up
Separately, data from the People’s Bank of China reported that new yuan-denominated bank lending in China totalled 664.5 billion yuan ($97.2 billion) in May compared to 591.8 billion yuan in April.
Money supply, as measured by M2, climbed 25.74% at the end of May from a year earlier, roughly in line with a 25.9% rise anticipated by analysts as reported by Dow Jones Newswires.
"The stabilization in money supply is as expected, considering the record rate of growth at the beginning of the year," said Ulrich. "The rapid pace of credit creation in recent months has had a stirring impact on China’s corporate sector, housing and stock markets."
Myra P. Saefong is MarketWatch’s assistant global markets editor, based in Tokyo. Chris Oliver is MarketWatch’s Asia bureau chief, based in Hong Kong
China data show further signs of recovery – MarketWatch
LED pioneer honoured
June 30, 2009When the history of technological development in the late 20th Century is written, the name of Dr. Isamu Akasaki is sure to figure prominently. Everyone who relies on modern communication technology owes a great debt of gratitude to this elderly Japanese professor, and yet publically, he remains a little-known. But hopefully, that may be about to change thanks to an award honouring Dr. Akasaki’s achievements.
What was Dr. Akasaki’s contribution to our modern world? Simply, he was the man that made the blue LED possible. Thanks in large part to his work, we now have high-speed internet communications, high-density data storage (hence the trade name “Blu-Ray”), and a cornucopia of other technological marvels – not to mention today’s full-colour LED screens.
The Inamori Foundation has announced that Dr. Isamu Akasaki will be awarded the Kyoto Prize in Advanced Technology for 2009. Celebrating its 25th anniversary this year, the annual Kyoto Prize is an international award honouring “significant contributions to the scientific, cultural and spiritual betterment of mankind.” The award is presented on November 10 each year in three categories.
Dr. Akasaki, 80, will receive the award for his pioneering work that led to the development of the blue LED. A semiconductor scientist, Dr. Akasaki serves both as a university professor at Nagoya University and professor at Meijo University in Japan.
The story of the development of the blue LED is the real stuff of legend: Once generally regarded as impossible, Dr. Akasaki persisted in his research for decades – long after others had given-up, and was eventually rewarded with success; his GaN-based positive-negative (p-n) junctions, making the blue LED practically possible for the first time. This achievement stimulated research on blue LEDs worldwide, and served as the first step toward their eventual commercialisation in the 1990s.
According to the Kyoto Prize press release, Dr. Akasaki’s pioneering research has not only led to numerous and diverse new applications in electronic equipment, but also offers great promise for protecting the global environment as blue LEDs are adopted for general-purpose lighting with superior energy-conserving qualities.
LEDs Magazine – Isamu Akasaki awarded Kyoto Prize for LED work