* China Q3 GDP grew 6.7 pct as forecast, industrial output
* Asia shares ex-Japan up 0.4 pct, Nikkei shade firmer
* Oil extends gains as U.S. crude stockpiles fall
* Wall St up as earnings beat forecasts, but Intel slides
By Wayne Cole
SYDNEY, Oct 19 Asian shares rose for a second
session on Wednesday as a barrage of Chinese data confirmed the
economy had stabilised on the back of government spending and a
hot housing market, even if worries about debt continue to
The initial reaction was muted with few fireworks in the
figures and Shanghai stocks edged up 0.2 percent.
MSCI's broadest index of Asia-Pacific shares outside Japan
added 0.4 percent, on top of Tuesday's 1.4
Australian shares firmed 0.3 percent, while Japan's
Nikkei rose 0.1 percent. EMini futures for the S&P 500
were also a fraction firmer, while spreadbetters
predicted modest opening gains for European bourses.
Chinese gross domestic product (GDP) expanded 6.7 percent in
the year to September, exactly as forecast. Private investment
remained subdued with government spending and property strong.
Other data showed retail sales rising a solid 10.7 percent
and urban investment 8.2 percent, but industrial output
disappointed by growing only 6.1 percent.
"The upshot from today's data is that economic activity
seems to be holding up reasonably well, with few signs that a
renewed slowdown is just around the corner," said Julian
Evans-Pritchard, China economist at Capital Economics.
"Nonetheless, the recent recovery is ultimately on borrowed
time given that it has been driven in large part by faster
credit growth and a property market boom, both of which
policymakers are now working to rein in."
Sentiment had got an early lift from Wall Street which
benefited from encouraging corporate earnings. The Dow
ended Tuesday up 0.42 percent, while the S&P 500 added
0.62 percent and the Nasdaq 0.85 percent.
Of the 52 S&P 500 companies that have reported results to
date for the third quarter, 81 percent had earnings that topped
average analyst estimates, according to forecasts collated by
Thomson Reuters I/B/E/S.
One company seemingly disappointing investors was Intel
, which slid 5.4 percent after the bell despite beating
expectations on its earnings.
POUND UP AMID BREXIT CONFUSION
A report on U.S. consumer prices showed underlying inflation
moderated slightly in September to 2.2 percent, leading the
market to slightly pare back bets on a December rate hike.
Fed fund futures <0#FF:> imply around a 65 percent
probability of a move, down from 70 percent.
Federal Reserve Chair Janet Yellen said last week the U.S.
central bank could allow inflation to run above its target.
U.S. Treasury yields dipped, in line with their UK
counterparts, amid confusion on whether parliament will have to
ratify Britain's exit from the European Union.
British lawmakers are seen as less inclined to take a hard
line on Brexit than Prime Minister Theresa May.
The news headlines caught the market very short of sterling
and left the pound up at $1.2279, after a rally of 1
percent on Tuesday.
The dollar was steady on the yen at 103.82, after
edging back from 104.20 the previous session. Against a basket
of currencies it dipped 0.1 percent to 97.809.
The euro remained vulnerable at $1.0980 ahead of
Thursday's meeting of the European Central Bank where some
investors wager President Mario Draghi will push back against
talk of a tapering in its asset buying.
In commodity markets, oil prices extended gains as an
industry group's data showed an unexpected draw in U.S. crude
inventories last week.
Brent crude was quoted up 47 cents at $52.15 a
barrel, while U.S. crude added 47 cents to $50.76.
(Editing by Eric Meijer & Shri Navaratnam)