China policy outlook murky after mixed bag of data

Chinese inflation quickened to a 19-month high in May, but a moderation of growth in factory output and capital spending eased worries for some analysts that the world's third-largest economy could boil over.

Others took the opposite view, arguing that China needs to stave off the risk of overheating by raising interest rates and letting the yuan strengthen -- as U.S. Treasury Secretary Timothy Geithner again urged on Thursday.

On balance, soothing comments by the National Bureau of Statistics suggested that the authorities are in no hurry to tighten policy, especially as the European Union, China's biggest export market, is mired in financial difficulties.