China October economic data beat expectations (by Chris Oliver)

HONG KONG (MakretWatch) -- China's industrial output showed an expectations-beating pick-up in October, while retail sales and fixed-asset investment also came in slightly ahead of forecasts, according to data released Friday. Industrial output rose 9.6% in October, higher than the 9.4% rise forecast in separate surveys by Reuters and Dow Jones Newswires, and marking an improvement from September's 9.2% gain. Retail sales were up 14.5% for the month from a year earlier, compared to Reuters' forecast for a 14% rise, and the previous month's 14.2% increase. Meanwhile, fixed-asset investment -- a measure of spending on construction, plant equipment and other projects -- grew 20.7% year on year in the first 10 months of the year, compared to a 20.6% rise tipped by Reuters and Dow Jones Newswires. Stock indexes in Hong Kong and Shanghai perked up slightly after the data release. The Shanghai Composite Index (CN:SHCOMP) turned fractionally higher, rising 0.1% after trading flat, while the Hang Seng Index (HK:HSI) trimmed its 0.4% loss to a more modest 0.3% after the numbers.

China's consumer inflation eases in October (by Michael Kitchen)

LOS ANGELES (MarketWatch) -- China's consumer-price inflation showed surprise easing in October, while wholesale prices deflated further, according to data released Friday. The consumer price index rose 1.7% from a year earlier, though separate surveys from Dow Jones Newswires and Reuters had tipped the CPI to rise 1.9%, just as it did in September. The producer price index fell 2.8% from the year-earlier period, slightly more than a 2.7% drop projected in the Dow Jones Newswires and Reuters surveys, but slowing from the previous month's 3.6% tumble. Stock indexes in Hong Kong and Shanghai came off their lows immediately after the data, which printed about a minute after the market opened. The Shanghai Composite Index (CN:SHCOMP) turned fractionally positive after an opening loss, while the Hang Seng Index (HK:HSI) trimmed its 0.7% opening drop to a more modest 0.4% loss after the numbers. The relatively benign price data offer the central bank more room to ease policy if needed.