The Singapore government announced early Wednesday that its economy is likely to expand by 9% this year. Coincidentally, South Korea also announced that its economic growth is accelerating. Meanwhile, economists surveyed by Bloomberg have estimated that China’s economy probably grew by 11.7% in the first quarter, the fastest rate in nearly three years. Stocks rallying in early Wednesday trading as Intel's global sales performance release late Tuesday continues to show Intel on a blistering growth trajectory. Intel shares rose as much as 3.6% in extended trading after the chip giant beat the street yet again.
The growth results in Singapore and the largest reported drop in Korean unemployment in a decade underscored Asia’s leadership in the global recovery. Stateside, Intel’s new forward-looking estimates punctuate a recovery that is taking solid root.
“Companies are demonstrating that economic conditions are improving, and the data points to an ongoing theme of recovery,” said Prasad Patkar, at Platypus Asset Management Ltd. in Sydney.
“Risk appetite is improving, buoyed by solid economic data and corporate profits,” said Norihiro Tsuruta, chief strategist in Tokyo at Shinko Research Institute Ltd.
And the U.S. Economic engine driven primarily by retail sales is also revving up. On Tuesday the ICSC-Goldman report registered a very strong plus 4.0 percent year-on-year pace. According to Goldman forecasts, strength in April will prove to be a key indication of U.S. consumer strength. Their forecasters expect a "very healthy" plus 4.0 percent year-on-year rate for the months of March and April combined.
An acceleration in the U.S. GDP would mean (by definition) that Q1 GDP will be above the rate measured in Q4.