Chinese GDP supports the emerging growth story
The latest growth numbers out of Beijing were better than expected, giving emerging markets throughout Asia a lift. As measured by gross domestic product (GDP), the Chinese economy grew at an annualized rate of 9.5% last quarter -- not quite as fast as the 9.7% we saw three months ago, but still impressive when you consider how aggressively Beijing has tried to hit the inflationary brakes. In fact, the markets were steeled to see Chinese GDP slow a bit more dramatically. While there is some grousing out there about how this will only feed inflation in China, the fact is that it is definitely soothing the on-again, off-again growth fears that have kept emerging markets on the defensive lately. Chinese stocks ( quote ) rallied overnight and there is a great chance China funds like FXI ( quote ) will do well today: If anything, China's strength could give traders fleeing the euro zone a place to park their money. That could give global funds like EEM ( quote ) a chance to do well today: a bid in the near future. Meanwhile, those who are discounting this news as bearish because all that growth is likely to feed inflation need to get their priorities straight. Do we want China -- the growth engine of the global economy at this point -- to keep growing, or do we want it to deflate? Either way, make up your mind.