China's rebound fading - Nomura

Analysts at Nomura explained that in China, activity data show March rebound fading in April.

Key Quotes:

"We continue to expect a gradual slowdown.

Key activity data all slowed in April, in line with our view of a short-lived March rebound.

The rebound in the property sector continued, but structural oversupply still looms.

We expect the pace of monetary policy easing to moderate and to become more cautious.

We maintain our forecast of real GDP growth of 6.3% y-o-y in Q2 from 6.7% in Q1.

Industrial production (IP) growth fell sharply to 6.0% y-o-y in April from 6.8% in March, coming in weaker than expected (Consensus: 6.5%).

Fixed asset investment (FAI) growth moderated to 10.5% y-o-y (ytd) in April from 10.7% in March, against expectations of a further pick-up (Consensus: 11.0%).

Nominal retail sales growth also edged down to 10.1% y-o-y in April from 10.5% in March, weaker than expected (Consensus: 10.6%)."