London (AFP) - Major stock markets mostly rose Tuesday as data showed China's economy grew far more than expected in the first quarter after the country ended three years of painful zero-Covid measures.
The blockbuster 4.5-percent expansion, helped by above-forecast retail sales last month, revived optimism for a recovery in the world's second biggest economy after its worst performance in decades in 2022.
The figures are the first snapshot since 2019 of a Chinese economy unencumbered by public health restrictions that included city-wide lockdowns lasting months.
Below-forecast readings on industrial output and fixed-asset investment suggested weaknesses remained in the economy and the recovery could be uneven.
"We expect to see higher GDP growth rate in upcoming quarters as a result of the low base from last year, and the annual growth target of five percent should be achievable," said Chaoping Zhu, at JP Morgan Asset Management.
"That said, some challenges still exist in the economy."
The Chinese economy remains beset by a series of problems including a debt-laden property sector, global inflation and the threat of recession elsewhere.
"It's not just the pandemic that the country is bouncing back from, confidence in the property market has been severely undermined and it will take time to recover," said Craig Erlam, senior analyst at OANDA trading group.
Focus on earnings
Investors also continue to fret over US Federal Reserve plans to hike interest rates as officials try to rein in inflation, with top policymakers seeming to be split over how many more increases are needed.
The focus this week is on the release of more first quarter earnings reports from major companies.
Goldman Sachs shares fell as it reported both revenue and profit dropped, helping drag the Dow down into negative territory as trading began.
Shares in Swedish telecom giant Ericsson were also down after it announced that it would step up its cost-cutting plan due to a "choppy environment" and slower global economic growth.
Investors were keeping an eye on the results of US regional banks after three collapsed last month as lenders face pressure from rising interest rates.
"Still, the broader market is overcoming those issues at the moment, bolstered primarily by the relative strength of the mega-cap stocks and the seeming magnetic appeal of the 4,200 level" in the S&P 500 index, said Briefing.com analyst Patrick O'Hare.
He noted that the US stock market's red-hot start in 2023 peaked at 4,195 points on February 2.
The S&P 500 opened up 0.3 percent at 4,165.56 points.
Key figures around 1330 GMT
New York - Dow: DOWN less than 0.1 percent at 33,961.14 points
London - FTSE 100: UP 0.3 percent at 7,904.31
Frankfurt - DAX: UP 0.7 percent at 15,895.12
Paris - CAC 40: UP 0.6 percent at 7,546.52
EURO STOXX 50: UP 0.8 percent at 4,407.74
Tokyo - Nikkei 225: UP 0.5 percent at 28,658.83 (close)
Hong Kong - Hang Seng Index: DOWN 0.6 percent at 20,650.51 (close)
Shanghai - Composite: UP 0.2 percent at 3,393.33 (close)
Euro/dollar: UP at $1.0950 from $1.0930 on Monday
Pound/dollar: UP at $1.2424 from $1.2376
Dollar/yen: DOWN at 134.26 yen from 134.46 yen
Euro/pound: DOWN at 88.17 pence from 88.29 pence
West Texas Intermediate: FLAT at $80.85 per barrel
Brent North Sea crude: FLAT at $84.75 per barrel
burs-rl/lth
